Public Company Accounting Oversight Board (PCAOB)

Climate Impact & Sustainability Data (2021)

Hosted two roundtables composed entirely of women audit committee members to discuss diversity and issues associated with women leaving the workforce due to the pandemic.
Awarded $2.53 million in scholarships to 253 students from 229 institutions, with a focus on diversity and supporting students from lower-income households.

Adopted a new rule in September 2021 related to the PCAOB’s responsibilities under the Holding Foreign Companies Accountable Act (HFCAA), providing a framework for determining whether the Board is unable to inspect or investigate registered public accounting firms in foreign jurisdictions.
Sanctioned 14 firms and 15 individuals in settled matters for significant audit violations, non-cooperation with inspections, and auditor independence violations.
Enhanced broker-dealer inspection information to provide more specific information in the areas of revenue and internal control over compliance.

Continuing challenges of the COVID-19 pandemic.
High-profile developments in the capital markets.
Ongoing technological evolution in auditing.
Access challenges in inspecting and investigating firms located outside the U.S.
Recurring audit deficiencies related to quality control systems at audit firms.
Increased use of external audit evidence from sources like regulatory agencies and industry data providers.
Growth of SPACs and concerns about misaligned incentives, dilution, and lack of liability.
High rates of redemption in SPACs, potentially eroding incentives for thorough due diligence.
Rise of market-based finance and vulnerabilities that are global in nature.
Growth of cryptoassets and decentralized finance (DeFi) and the need for adapting regulatory frameworks.
Transition to net zero and managing physical and transition risks related to climate change.

Adapted the 2021 inspection program to respond to the effects of the COVID-19 pandemic on financial reporting and audit risks.
Focused on financial statement items and reporting matters affected by the pandemic (going concern assessments, allowances for loan losses, impairments, fraud).
Enhanced the unpredictability of inspections by increasing random selection and selecting non-traditional focus areas.
Educated auditors, audit committees, and investors on common deficiencies and good practices.
Released staff guidance on considerations regarding the relevance and reliability of information from external sources used as audit evidence.
Held an investor webinar focused on international issues.
Engaged with audit committee chairs.
Hosted roundtables with women audit committee members.
Hosted an annual Forum for Auditors of Small Businesses and Broker-Dealers.
Proposed a standard on quality control and a more uniform approach to a lead auditor's supervision of other auditors.
Developed a research project on data and technology to assess the need for guidance or changes to PCAOB standards.
SEC proposal to address concerns around dilution in SPACs through enhanced disclosures.
Working with international counterparts to address vulnerabilities in market-based finance.
Monitoring cryptoassets and DeFi and developing regulatory frameworks.
Running a stress test of UK’s largest banks and insurers to assess climate risks.

Climate Change Data