Feedback from stakeholders on proposed audit quality standards

Arianna S. Pinello (), Adrian Valencia (), Jules Patrick Abel Mama (), Tyler Waller () and Marcia Zubieta ()

International Journal of Accounting, Business and Finance, 2024, vol. 3, issue 2, 1-19

Abstract: The American Institute of Certified Public Accountants (AICPA) and the Public Company Accounting Oversight Board (PCAOB) established audit quality control standards to ensure that audit engagements comply with both professional standards and the firm’s standard of quality. However, existing standards have not kept pace with auditing advancements over the years. To remedy the problem, in December 2019, the PCAOB issued a concept release proposing a potential approach to revising its quality control standards. Similarly, in February 2021, the AICPA issued an exposure draft to address the way CPA firms manage quality for their auditing and accounting engagements. This paper provides an overview of both proposals and analyzes comment letters submitted to both governing bodies on these proposals. Our results suggest that large CPA firms supported the proposals, while smaller firms and individual CPAs opposed them. The feedback from smaller firms and individual CPAs strongly suggests that the proposals are not scalable, and the proposed standards would significantly increase the cost of their audit engagements.

Keywords: AICPA; PCAOB; IAASB; Audit Quality Standards (search for similar items in EconPapers)
Date: 2024
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.ijabf.in/index.php/IJABF/article/view/111 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dbs:ijabfi:v:3:y:2024:i:2:p:1-19:id:111

Access Statistics for this article

International Journal of Accounting, Business and Finance is currently edited by Dr. Dharen Kumar Pandey

More articles in International Journal of Accounting, Business and Finance from Indian Accounting Association, Patna Branch
Bibliographic data for series maintained by Indian Accounting Association Patna Branch ().