On September 16, 2024, the PCAOB Staff released a “Spotlight” report regarding issues related to auditor independence based on recent PCAOB inspections.  The Staff report, titled “Inspection Observations Related to Auditor Independence,” highlights recent trends in independence-related issues identified in PCAOB inspections.

The report noted that the percentage of comment forms related to auditor independence issues increased from 7% in 2021 to 14% in 2023, with the highest number of such comment forms arising from inspections of non-U.S. global network firms.  According to the report, comment forms most frequently raised issues related to audit committee pre-approval of services and independence representations of engagement team members and associated persons.  The report included observations for several independence-related standards and rules, as well as “Good Practices” identified by PCAOB Staff to help ensure compliance with auditor independence requirements.  The report is available here.