In June, the Public Company Accounting Oversight Board (PCAOB) proposed changes to its auditing standards relating to compliance. I want to make you aware of these important changes and encourage you to submit comments to the PCAOB before the comment period closes on August 7.
Most of the proposal serves to modernize a compliance-related standard that has not been changed since 1988 and to make related updates to a standard on the procedures auditors perform to assess the risk of a company's financial statements being misstated.
The proposed standards elevate the visibility and importance of compliance and ethics programs, as auditors will be expected to make inquiries about compliance risk assessments, whistleblower hotlines, and compliance programs. This added attention is a good thing and may even help to raise awareness of the importance of compliance programs at the board and senior management level.
But there are two areas where the standards should be strengthened further, and this is where I'd like to direct your attention in connection with submitting your comments to the PCAOB.
Visit our website to learn more about the proposed changes and why I am asking you to take action. Your help in elevating the importance of our profession is critical to its success. We'll be submitting a comment letter on behalf of SCCE & HCCA. But your additional support is important. Please read my full commentary and the proposed standard, and submit your comments on or before August 7.
Best regards,
Gerry Zack
CEO, SCCE & HCCA
📃Full commentary: Proposed PCAOB Audit Standards
📃For a complete copy of the proposed standards, go to:
https://assets.pcaobus.org/pcaob-dev/docs/default-source/rulemaking/docket-051/pcaob-release-no.-2023-003---noclar.pdf?sfvrsn=fe43e8a_2
✍🏻Instructions and a direct link to submit your comments can be found here (note that your comments should reference Docket 051):
Open for Public Comment
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| The PCAOB encourages all interested parties to comment on its proposed rules and standards, as well as other Board releases, staff consultation papers, and other materials. Comments may be included in the body of the email, attached as a Microsoft Word Document, or attached as an Adobe PDF. |
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Steve Pavlicek | Community Engagement Manager
Society of Corporate Compliance and Ethics
Health Care Compliance Association
Office: 952.567.6219
6462 City West Parkway | Eden Prairie, MN 55344
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