backOn November 28, 2023, PCAOB Chair Erica Y. Williams delivered remarks at the 18th Annual Audit Conference at the Baruch College Zicklin School of Business. Chair Williams highlighted the Board’s work on new proposals and standards over the last two years. She noted that the Board issued six proposals regarding new audit standards and a rulemaking project—with an additional proposal for public comment on follow-on disciplinary proceedings expected by the end of the year. Regarding standards, Chair Williams raised the Board’s adoption of two new standards and related amendments, including one to help auditors detect fraud and better protect investors that, subject to approval by the SEC, will take effect for audits of financial statements for fiscal years ending on or after June 15, 2025. Chair Williams also noted an expected increase in the percentage of audits inspected in 2022 that will have had one or more deficiencies where the audit firm failed to obtain sufficient appropriate evidence to support its opinion. She stated that the responsibility falls on firms to correct the problems that led to deficiencies in their audits. Regarding enforcement, Chair Williams indicated that the Board is expanding how it identifies cases, expanding the types of cases it pursues, and continuing to impose high penalties.
Chair Williams’ remarks are available here, with video of remarks available here.