The Impact of PCAOB Inspections on the Audit Process and Audit Standard Setting

• In Event: Impact of PCAOB Inspections on the audit process and/or standard-setting

Abstract

The purpose of this study is to investigate the impact of the Public Company Accounting Oversight Board’s (PCAOB) inspections on the audit process and audit standard setting. We do this by surveying practicing audit partners about recently required changes in auditing practices and procedures. We extract findings from recent PCAOB inspection reports of the Big 4 auditors, and map the findings to the information provided by the partners. The study’s results provide evidence in support of recent assertions made by practitioners and others that the PCAOB may be bypassing the institutional standard setting process through its inspection process.

Authors

• Colleen M Boland, University of Wisconsin-Milwaukee

• Veena Looknanan Brown, University of Wisconsin-Milwaukee

• Denise Dickins, East Carolina University