My Top 5 PCAOB Independence Inspection Findings & Comments in Speeches in 2017


In the spirit of learning from this past year, I put together a summary of my top 5 independence PCAOB (Public Company Accounting Oversight Board) inspection findings and recent comments in speeches by the staff.  The five (5) are: 

  • Misapplied quality control rule that provides a safe harbor for certain independence mishaps
  • Inadequate audit committee communications on tax services and independence
  • Indemnification clauses in audit engagement letters 
  • Impermissible bookkeeping and other nonaudit services
  • Lack of annual communication with the audit committee about independence

The two-page summary recaps these issues, along with my brief comments on addressing them, and also provides a preview into a few independence matters PCAOB will be focusing on in their upcoming inspections. 

Your comments are always welcome. 


Journal of Accountancy Article on Hosting Services and Independence


The January issue of the Journal of Accountancy includes an article I wrote last year on how data hosting services can affect independence.  This occurs when a member assumes responsibility for maintaining an attest client's data or records.  The article includes examples from the new interpretation of what does and does not create a hosting services situation that impairs independence.