The Public Company Accounting Oversight Board[ has created three videos from its staff on its quality control standard explaining the monitoring and remediation process.
The Securities and Exchange Commission approved the PCAOB’s QC standard last September. QC 1000, “A Firm’s System of Quality Control”, will require all registered public accounting firms to identify specific risks to their practice and design a quality control system that can safeguard against those risks. The standard will require an annual evaluation of firms’ QC systems and reporting to the PCAOB. It takes effect on Dec. 15, 2025.
The videos are the latest in that series of resources released by the PCAOB on that standard and others. The PCAOB is encouraging auditing firms to take advantage of the different implementation resources, including staff-led videos, guidance documents, knowledge checks, a practice aid, and interactive chart, which are available on the Implementation Resources for PCAOB Standards and Rules page. Led by staff members in the PCAOB’s Office of the Chief Auditor, the three videos cover different topics such as the following:
How to determine if engagement deficiencies exist;
How to respond to engagement deficiencies, including the auditor’s responsibility to respond to engagement deficiencies on completed engagements under an amended and retitled AS 2901, Responding to Engagement Deficiencies After Issuance of the Auditor’s Report; and,
How to determine if QC observations and QC deficiencies exist.
