PCAOB: Audit Focus – Engagement acceptance

PCAOB: Audit Focus – Engagement acceptance

• 29 July 2025
• Audit
• South African Accounting Academy

Summary:

The Public Company Accounting Oversight Board (PCAOB) has published their latest edition of the Audit Focus series – on Engagement Acceptance.

Article:

The PCAOB urges audit firms to only accept work they can handle, offering tips for evaluating capacity and improving audit quality for smaller public companies.

The decision of whether or not to accept an engagement is a critical part of the audit process.

Audit firms have a responsibility to undertake only those engagements that they can reasonably expect to be completed with professional competence.

This edition of Audit Focus highlights key reminders for auditors from PCAOB standards related to engagement acceptance for the initial engagements of auditors who audit smaller public companies or brokers and dealers (“broker-dealers”).

The Audit Focus also shares good practices that the PCAOB staff has observed.

Audit Focus is a series of PCAOB publications that aims to provide easy-to-digest information to auditors, especially those who audit smaller public companies and/or broker-dealers.

Click here to download the 5-page:

https://assets.pcaobus.org/pcaob-dev/docs/default-source/documents/audit-focus-engagement-acceptance.pdf?sfvrsn=3b839107_2

Relevance to Auditors, Independent Reviewers & Accountants:

• As an auditor and independent reviewer, you need to be aware of and consider all the latest publications (especially guidance) by regulators and oversight bodies, like the PCAOB.

0 COMMENTS

LEAVE A COMMENT