Comment: PCAOB standard setting

In our letter responding to the PCAOB’s Request for Public Comment on PCAOB Standard Setting, we commend the Board’s willingness to engage stakeholders and incorporate feedback when evaluating current and emerging audit issues and appreciate its transparency when identifying focus areas and determining whether to best address a particular matter through standard setting, research, staff guidance, or other regulatory action. Our comments primarily address the PCAOB’s potential focus areas, including artificial intelligence and digital assets, fraud, noncompliance with laws and regulations, and auditor independence.

We also express support for developing a conceptual framework for standard-setting activities, which we believe could (1) enhance transparency, consistency, and discipline throughout the standard-setting process while providing stakeholders with greater insight into how projects are prioritized for selection and developed by the Board; (2) help standard setting remain grounded in clearly articulated principles and due process, regardless of changes in Board composition or leadership over time; and (3) promote greater predictability for stakeholders and facilitate more informed participation in the standard-setting process.

Download (PDF - 212.17KB) our letter to read our comments in full.