Page 5 - Inspection Report 2018

CONTENTS

INTrOduCTION 4
• What the AOB Does with Findings? 6
• What Should PIE Directors Do with Findings? 7

PArT I
Insights into the Audit Profession 8
• Audit Clients’ Movement 9
• Capacity Building Efforts 10
• Box Articles
– Growing for a Better Future 12
– Engagement Level Trend Analysis of Audit Quality Indicators 13

PArT II
Inspection Findings and Observations from Firm Level reviews 14
• Common Findings for Major and Other Audit Firms 16
• Box Article
– Auditor Independence 18

PArT III
Inspection Findings and Observations from Engagement Level reviews 20
• Engagements with Significant Improvements Required 22
• Common Findings for Major and Other Audit Firms 24
– Engagement Quality Control Review 25
• Thematic Reviews 27
– Key Audit Matters 27
– Data Analytics 29
– Going Concern 31

PArT IV
remediation of Inspection Findings 34
• Overall Progress 35
• Recurring Findings 36
• Box Article
– Root Cause Analysis Performed by the Major Audit Firms 37

CONCLuSION 38

ACrONymS ANd ABBrEVIATIONS 41

dEFINITIONS 42

AUDIT OVERSIGHT BOARD
ANNUAL INSPECTION REPORT 2018 3

83806_Inside_NEW.indd 3 5/28/19 3:01 PM