JANUARY 10, 2018 POINT OF VIEW
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.