PCAOB offers videos on quality control monitoring, remediation

The Public Company Accounting Oversight Board[ has created three videos from its staff on its quality control standard explaining the monitoring and remediation process.

The Securities and Exchange Commission approved the PCAOB's QC standard last September. QC 1000, "A Firm's System of Quality Control", will require all registered public accounting firms to identify specific risks to their practice and design a quality control system that can safeguard against those risks. The standard will require an annual evaluation of firms' QC systems and reporting to the PCAOB. It takes effect on Dec. 15, 2025.

The PCAOB has been rolling out guidance and information on the new QC 1000 standard, including a series of online "knowledge checks" to help auditors gauge their understanding of various aspects of the standard.

The videos are the latest in that series of resources released by the PCAOB on that standard and others. The PCAOB is encouraging auditing firms to take advantage of the different implementation resources, including staff-led videos, guidance documents, knowledge checks, a practice aid, and interactive chart, which are available on the Implementation Resources for PCAOB Standards and Rules page.  Led by staff members in the PCAOB's Office of the Chief Auditor, the three videos cover different topics such as the following: 

Part I:

• The objective of the monitoring and remediation process; 
• General requirements for monitoring and remediation; and, 
• Requirements related to designing and performing monitoring activities for engagements and the QC system itself. 

Part II:

• How to determine if engagement deficiencies exist; 
• How to respond to engagement deficiencies, including the auditor's responsibility to respond to engagement deficiencies on completed engagements under an amended and retitled AS 2901, Responding to Engagement Deficiencies After Issuance of the Auditor's Report; and,
• How to determine if QC observations and QC deficiencies exist. 

Part III: 

• Performing root cause analysis on QC deficiencies; and, 
• Designing, implementing, and testing remedial actions.