backOn November 28, 2023, PCAOB Board Member George R. Botic also delivered remarks at the 18th Annual Audit Conference at the Baruch College Zicklin School of Business. Botic focused on the importance of the auditing profession to society and the need for high quality audits. He first highlighted the PCAOB’s four-part strategic plan to protect the interests of investors, which consists of (1) modernizing standards; (2) enhancing inspections; (3) strengthening enforcement; and (4) improving organizational effectiveness. Botic also highlighted the significant role and responsibility of the auditing profession to maintain high audit quality, particularly in times of uncertainty and an observed downward trend with respect to audit quality based on PCAOB inspection results. He characterized independent auditors as on the “front lines of investor protection” and as the “gatekeepers” for investors and the public interest. To that end, Botic noted that audit firms need to have a clear culture that ensures the consistent execution of high-quality audits. He stated that this included not just external and internal communications (e.g., tone at the top), but also the decisions made by a firm with respect to rewarding or disciplining certain behaviors and the formal policies, procedures, and structures in place. Botic also encouraged firms to devote additional time and attention towards rigorous engagement quality reviews and the identification and evaluation of all potential critical audit matters.
PCAOB Board Member Botic’s remarks are available here.