PCAOB Enhances Transparency of Inspection Reports

The PCAOB has announced that it has enhanced its inspection reports by adding a new section on auditor independence and made other improvements to increase the reports’ transparency. The new section discusses instances of noncompliance with certain PCAOB independence rules as well as potential noncompliance with SEC independence rules. Other updates to the reports include (1) the addition of information on fraud procedures and the identification and assessment of risks of material misstatements, (2) more commentary on audits with unsupported options, and (3) new charts illustrating firm and engagement partner tenure.