In July 2023, the Public Company Accounting Oversight Board (PCAOB) shared in their Staff Update and Preview of 2022 Inspection Observations that both audit deficiencies and noncompliance with PCAOB standards and rules rose in 2022. And while the PCAOB aims to evaluate the work of audit firms, the unfortunate impact to audit clients is increased scrutiny and documentation, creating longer audits and more investment of your time.
Common audit deficiencies related to testing Internal Controls over Financial Reporting (ICFR) were similar to those reported in prior years and include:
Increased PCAOB audit deficiencies may potentially create new issues for you and your team. You won’t be able to rely on past audit history as a more stringent quality review may bring up additional questions or request additional support not previously required.
Whether your company is an accelerated filer or not, there will be a continued impact to you and your organization. Given the complexity of tax processes in general, the tax department is rarely seen as anything but a red flag in a company level risk assessment. Add to this the burden of internal pressure from the top to improve accuracy, transparency and efficiency, it may feel as though the list of requirements just doesn’t stop growing.
Baker Tilly is here to serve as your advocate and advise you on dealing with these new challenges and alleviate the burden you experience at year-end. Have you considered a review of your tax processes and controls to prepare yourself for the year-end provision? A review will help you:
Our goal is to work with your team to develop a customized process that best fits the needs and concerns of your individual tax department and organizational strategy.
Baker Tilly has a team of experienced professionals who can help you identify areas of risk within your recently completed tax return compliance process, as well as the upcoming tax provision process. We can assist in evaluating existing roles and responsibilities to ensure that the proper alignment is in place and look for ways to leverage existing internal and external resources to increase efficiency and free up time. Together, we can build a comprehensive strategy to tackle your year-end provision process.
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.