Also in December, the PCAOB released a report describing the observations resulting from the Division of Registration and Inspections 2022 target team inspections. The target team, which consists of inspectors who focus on emerging audit risks and perform in-depth reviews across audit firms, focused on (i) post-IPO audits, (ii) audit firms’ use of shared service centers, and (iii) climate-related matters in the context of a public company’s financial statements. In addition to detailing the target team’s observations on those three areas, the report details the good practices that may enhance audit quality.

 

For 2023, the target team has been focused on the audits of public companies that include risks related to distributed ledger technology, interim reviews of certain banks, multi-location audits, and significant or unusual events and transactions.

 

The PCAOB’s report is available here.