PCAOB 2024 First Quarter Recap

This recap presents key PCAOB developments and news for the first quarter of 2024. For more on the PCAOB’s work to protect investors, please sign up for updates here.

Fortune’s The accounting crisis everybody seems to ignore, and the regulator fighting to fix it (March 9) featured an interview with Chair Williams. “[People] don’t necessarily need to know who [we] are, but they need to know that we are out there, thinking about them every day: making sure that auditors are doing their job, so that they can have confidence…when they are investing their money,” says PCAOB Chair Erica Williams on the importance of PCAOB’s work in a recent Fortune article.

PCAOB Protects: The PCAOB works every day to strengthen investor protection for the benefit of our markets and economy. Learn about our history and mission:

Enforcement

During the first quarter, the PCAOB imposed over $6 million in fines against those who put investors at risk.

• PCAOB Sanctions Haynie & Company and Four of Its Current and Former Partners for Audit and Quality Control Violations.

• PCAOB Sanctions Audit Firm and Partner for Violating PCAOB Audit and Quality Control Standards.

• PCAOB Sanctions Engagement Partner and EQR Partner for Failures in Auditing Financial Statements and Internal Controls.

• PCAOB Sanctions Four Audit Firms for Violating PCAOB Rules and Standards Related to Audit Committee Communications.

• Imposing $2 Million in Fines, PCAOB Sanctions WithumSmith+Brown, PC for Pervasive Quality Control Violations Involving SPAC Audits.

• PCAOB Sanctions Gries & Associates for Deficient Audit Work That Preceded Multiple Financial Restatements.

• PCAOB Sanctions Audit Firm and Its Sole Partner for Violations of PCAOB Rules and Standards in Multiple Issuer Audits.

• PCAOB Sanctions Three Partners of KPMG China for Violations of Audit Standards.

• PCAOB Sanctions PwC Australia for Violations Related to Reporting and Quality Control Monitoring Requirements

• PCAOB Fines PwC $2.75 Million for Quality Control Violations Relating to Independence

• Following Sweeps, PCAOB Sanctions Five Firms for Violations Related to Audit Documentation and Disclosure of Who Worked on Audits

Standard Setting and Rulemaking

A proposed PCAOB rule would prohibit auditors from making false or misleading statements about PCAOB registration and oversight.

Investor Bulletin on Registration Proposal. The PCAOB’s Office of the Investor Advocate alerted investors to the opportunity to comment on the PCAOB’s February 27 proposal regarding false or misleading statements concerning PCAOB registration and oversight. Comments are due by April 12, 2024.

Inspections

A PCAOB staff report provides insights and reminders for auditors regarding potential factors contributing to high deficiency rates in broker-dealer engagements.

Firm Inspection Reports. The PCAOB released 2022 inspection reports for all the firms that the PCAOB inspects annually. (A firm is inspected annually if it provides audit opinions for more than 100 issuers.)

Engagement

Board Members engage with students.

On January 31, Board Member Thompson visited accounting and business students and faculty at Pepperdine University.

On February 26, Board Member Botic hosted masters’ students from Indiana University Bloomington's Accounting with Data and Analytics program as part of their Washington Campus Accounting and Public Policy Symposium visit.

On March 20, Board Member Botic paid a visit to students and faculty at his alma mater, Virginia Tech.

PCAOB Announces 2024 Advisory Group Members. On February 7, the PCAOB announced the 2024 members of its two advisory groups: the Investor Advisory Group (IAG) and the Standards and Emerging Issues Advisory Group (SEIAG). Advisory group members are appointed for two-year terms.

PCAOB Roundtable. On March 6, PCAOB staff hosted a public virtual roundtable regarding the proposal to amend PCAOB auditing standards related to the auditor’s responsibility for considering a company’s noncompliance with laws and regulations.

Investor Bulletin on Office of the Investor Advocate’s Anniversary. February 2024 marked the one-year anniversary of the Board’s creation of the Office of the Investor Advocate.

PCAOB Personnel Announcements

James Cappoli Named PCAOB General Counsel. On January 11, the Board announced the appointment of James Cappoli as General Counsel.

Michael Weigand Named Director of the PCAOB’s Office of Internal Oversight and Performance Assurance. On February 13, the PCAOB announced the appointment of Michael Weigand as Director of the Office of Internal Oversight and Performance Assurance (IOPA), effective immediately.

Job Openings

Visit our website for career opportunities with the PCAOB. Currently we have openings in the following offices:

• Division of Registration and Inspections

• Office of General Counsel

• Office of the Chief Auditor

• Office of Economic and Risk Analysis

• Office of Data, Security and Technology

• Office of Hearing Officers

• Office of Human Resources 

• Office of Enterprise Risk Management

• Office of Finance

• Business Operations

• Fall 2024 Internships

About the PCAOB

The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and further the public interest in the preparation of informative, accurate, and independent audit reports. The PCAOB also oversees the audits of brokers and dealers, including compliance reports filed pursuant to federal securities laws.

Contact

• PCAOB Office of Communications and Engagement: OCE@pcaobus.org

• Office of the Investor Advocate: PCAOBInvestorInquiries@pcaobus.org