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.