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 the 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.