PCAOB Launches Smaller Firm Resource Group

The Public Company Accounting Oversight Board (PCAOB) today announced the formation of the Smaller Firm Resource Group, an advisory group of professionals from smaller audit firms.

The Smaller Firm Resource Group will advise PCAOB staff on:

• Auditing and related professional practice standards.
• Inspections and related activities.
• Economic considerations, including but not limited to costs and benefits of PCAOB programs, and their impact on audit quality among smaller firms in each case, in order to protect investors and further the public interest in the preparation of informative, accurate, and independent audit reports.

“Smaller audit firms play an essential role in the U.S. capital markets and in protecting investors, which is why creating the Smaller Firm Resource Group was a priority for the PCAOB,” said PCAOB Acting Chair George R. Botic. “We are eager to hear from the participants who have generously volunteered to share their real-world perspectives into the experiences of smaller firms.” 

Smaller Firm Resource Group Members

Recently, the PCAOB has enhanced its focus on smaller firms with a range of initiatives, including:

• Holding a nationwide series of in-person forums for auditors of smaller businesses and broker-dealers.
• Hosting in-person workshops and virtual workshops designed to assist smaller audit firms with the practical implementation of QC 1000, A Firm’s System of Quality Control. 
• Providing guidance documents, expert recordings led by PCAOB staff, quizzes, and other materials on QC 1000, AS 1000, and other new standards and rules—all of which can be found on the PCAOB’s Implementation Resources webpage.
• Sharing more insights from PCAOB inspections, including good practices to help firms continue to improve.
• Launching a new publications series, Audit Focus, targeted at smaller firms.
• Being available to answer questions that auditors may have about the implementation of standards or rules.

Auditors with questions about the group can email: [email protected].

For more on the PCAOB’s engagement with smaller firms, visit the Information for Smaller Firms resource page to find resources and sign up for updates on the Communications to Small Audit Firm Practitioners email list.

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About the PCAOB

The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and further the public interest in the preparation of informative, accurate, and independent audit reports. The PCAOB also oversees the audits of brokers and dealers registered with the Securities and Exchange Commission, including compliance reports filed pursuant to federal securities laws.