Audit Conduct

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PCAOB Inspection Observations on Communications with Audit Committees

A PCAOB report released 4/5/16 examined firms’ implementation of new PCAOB audit committee communication standard AS1301 indicates that firms have implemented and most (but not all) audit teams have properly applied the new standard. The PCAOB also observed noncompliance / lack of understanding by some auditors with existing independence rule 3526 to communicate with the audit committee about independence.