On December 5, 2022, the Public Company Accounting Oversight Board (Pcaob) Published a Summary and Analysis of the Main Observations Resulting from Its Inspection Visits Conducted in 2021. the Main Purpose of These Inspections Is to Help Protect Investors by Evaluating and Reporting Auditors' Compliance with Pcaob Rules and Standards. This Report Provides Investors and Other Stakeholders with Information to Improve Understanding of the Pcaob's Findings During the 2021 Cycle. from the " Summary" Section , We Can Highlight That 690 Jobs Were Reviewed in 141 Audit Firms, as a Result of Which It Is Concluded, Among Other Aspects, That the Number of Audits with Deficiencies in 2021 Increased in Relation to 2020.
This Increase Is Driven by By Auditor Deficiencies in Performance of Critical Audit Matters (The Percentage of Total Deficiencies Related to Cams Increased to 31% in 2021, from 13% in 2020 and 2% in 2019) and Areas with Recurring Deficiencies. the Objectives Are Two That Sweden Phone Number List Correspond to 1) Continue with the Rigorous Inspection Program Started in 2020, Including the Response to Covid-19 and 2) Increase the Unpredictability of Inspections. It Is Noteworthy That, in 2021, 100% of the Inspections Were Carried Out Remotely, Without Affecting Their Rigor and Scope. the 2019-2021 Trends Reflect Deficiencies in the Audit of Internal Control in the Financial Report (Icrf) and in the Audit of the Financial Statement, Which Are Related to the Sufficiency and Adequacy of the Audit Evidence That Supports the Opinion of an Audit Firm. in Addition to the Above.
The Inspections Include Other Aspects Related to the Standards Where the Most Relevant Is the Growth in the Number of Deficiencies Related to the Evaluation and Reporting of Critical Audit Issues, with Communication with the Committee Taking Second Place. Apart from Common Deficiencies , Deficiencies Similar to Those That Have Been Identified in Previous Years Continue to Be Observed. These Deficiencies Occur in Complex Areas And, in Turn, Include Increased Risks of Material Misstatement. Regarding the Use of New Technologies by Auditors, It Is Indicated That Some Audit Firms Are Using Technology-Based Data Analysis Tools When Auditing Revenue. These Tools Allow Auditors To: Perform Correlation Analysis Between Revenue, Accounts Receivable, and Cash Receipts Identify Elements for Investigation. Auditors Did Not Evaluate Whether the Population of Cash Journal Entries the Auditors Did Not Sufficiently Evaluate the Implications of the Exceptions Identified in Testing the Revenue Transactions.
