PCAOB staff spotlight on auditor use of data and reports

The Public Company Accounting Oversight Board (PCAOB) staff recently issued a spotlight outlining its observations related to the use of information produced by the company (IPC) and information from external sources in an audit.

The spotlight highlights common areas of inspection deficiencies identified in 2021-2022 comment forms related to data and reports, such as:

• Testing the completeness and accuracy of IPC
• Relevance and reliability of audit evidence
• Testing controls over the completeness and accuracy of data used by the control owner in the operation of a control
• Assessment of the reliability of data used to develop the expectations from the analytical procedure
• Using information produced by a service organization
• Testing the completeness and accuracy of supplemental information accompanying audited financial statements
• Reviewing reports and documentation supplied by an auditor-engaged specialist to evaluate whether the specialist’s work provided sufficient appropriate evidence

In addition, the spotlight offers some reminders of good practices and considerations.