A PCAOB auditor is a licensed accountant or accounting firm that performs audit engagements of public companies, as defined by the Securities and Exchange Commission (SEC). A PCAOB registered public accounting firm must be registered with the Public Company Accounting Oversight Board (PCAOB), a non-profit organization that governs the auditing of public companies in an effort to protect investors and the public.
There is a high level of fiduciary responsibility that comes with performing PCAOB audits, as the auditor is expected to provide investors and other stakeholders with an accurate picture of the company’s financial health. PCAOB auditors must have extensive knowledge of Generally
Accepted Accounting Principles (GAAP) and the SEC’s auditing standards to complete these audits.
During an engagement, PCAOB auditors are required to perform many procedures but not limited to:
- Risk assessment to determine the nature, timing, and extent of testing.
- Review financial statements for accuracy and proper disclosures.
- Evaluate whether the company has properly accounted for and disclosed its critical accounting policies and estimates.
- Disclose Critical Audit Matters.
- Issue an ICFR (Internal Control over Financial Reporting) report to explain the company’s systems of internal control and assess their effectiveness for audits subject to
- Sarbanes Oxley.
Auditors must also submit to PCAOB inspections and peer reviews, which assess the quality of the auditor’s work and adherence to the PCAOB standards. Any deficiencies or violations found during the inspections may result in public disclosure of the findings.
What Companies Need a PCAOB Auditor?
A PCAOB audit is an essential tool for maintaining transparency, accountability, and trust in publicly traded companies. The SEC requires that all public companies trading in the US securities market be audited annually by a PCAOB-registered public accounting firm and complete a quarterly review engagement.
Additionally, companies that have registered an Initial Public Offering (IPO) with the SEC must have a public company audit performed before the offering can be completed. Companies are required to make the annual report public, so investors and other stakeholders can have a clear and comprehensive view of the company’s financials.
Work with An Experienced PCAOB Audit Team
Our team of talented professionals understands the complex rules associated with regulatory compliance.
Assurance Dimensions is registered with the Public Companies Accounting Oversight Board (PCAOB). Our registration with the PCAOB enables us to audit SEC registrants and holds us accountable to PCAOB standards for review.
Contact us today to prepare for your next SEC audit.
