Key Takeaways from PCAOB Order

Public Company Accounting Oversight Board (PCAOB) recently imposed sanctions on the public accounting firm and requires the Firm to comply with its policies and procedures directed toward ensuring compliance with PCAOB standards. In this regards we have discussed the lapses observed by PCAOB and relevant provisions in Indian context, safeguards and key-take away from the order.

(a) The Audit firm failed to communicate to the Audit Committee of the company Information About Other Independent Public Accounting Firms that Performed Audit Procedures in the Audit

(b) Audit firm failed to ensure that Audit Committee had received a copy of Management’s Representation Letter(MRL)

(c) Audit Firm failed to make required Audit Committee communications

(d) Auditor’s System of Quality Control failed to provide reasonable assurance with respect to compliance with standards

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