The PCAOB has approved two new standards for a firm's system of quality control (QC) and the general responsibilities of the auditor in conducting an audit.
The new quality control standard requires all PCAOB-registered firms to identify their specific risks and design a QC system that includes policies and procedures to guard against those risks.
The standard would require firms that audit over 100 issuers annually to establish an External QC Function (EQCF).
The PCAOB also approved a new standard on the general responsibilities of the auditor, consolidating and enhancing existing standards.
The new standards, if approved by the SEC, will take effect in December 2025. Read more.