PCAOB Substantive Analytical Procedures

TXCPA’s Professional Standards Committee supports PCAOB’s effort to modernize auditing standards on substantive analytical procedures but cautions that removing examples and descriptive language reduces clarity and consistency.

PCAOB Proposed Auditing Standard - Designing and Performing Substantive Analytical Procedures

The TXCPA Professional Standards committee (PSC) supports the Public Company Accounting Oversight Board's (PCAOB) efforts to update and modernize rules and guidance on the use of substantive analytical procedures in the audit by issuing a new standard.

The PSC believes the proposed rules will help bring consistency in the execution of substantive analytical procedures.

However, the proposed standard as drafted does not meet the Board’s objective of clarification in many aspects. We believe the PCAOB erred by “removing descriptive language and illustrative examples” from the current standard.

Additional information is available in the following The Wall Street Journal article published on June 12, 2024: PCAOB Expands Liability for Auditors Involved in Firm Violations

Read the full comment here. View TXCPA PSC comment letter here.

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