PCAOB forms Smaller Firm Resource Group

The Public Company Accounting Oversight Board formed 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, and economic considerations such as the costs and benefits of PCAOB programs and their impact on audit quality among smaller firms.

The PCAOB defines smaller firms as those that issue or play a substantial role in the audits of 100 or fewer public companies; more than 500 such firms are involved in the audits of over 3,200 companies.

“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,” PCAOB acting chair George Botic, said in a statement. “We are eager to hear from the participants who have generously volunteered to share their real-world perspectives into the experiences of smaller firms.”

This is the latest effort to enhance its focus on smaller firms. Its other initiatives include a series of in-person forums for auditors of smaller businesses and broker-dealers; in-person and virtual workshops to help firms implement QC 1000, A Firm’s System of Quality Control; a resource page that contains guidance documents, recordings by PCAOB staff, quizzes and other materials on QC 1000, AS 1000 and other new standards and rules; and sharing more insights from inspections; a new series called Audit Focus for smaller firms.

The members of Smaller Firm Resource Group are: