by J. Robert Brown, Jr.

These remarks have been edited for length and are being published in two parts. The following post is Part II of J. Robert Brown, Jr.’s prepared remarks delivered on November 6, 2020 at the 50th World Continuous Auditing & Reporting Symposium. As Mr. Brown noted at the beginning of his remarks, the views he expressed therein are his own and do not necessarily reflect the views of his fellow Board members or the staff of the PCAOB.

Accountability and Public Input

With respect to the PCAOB’s mission, transparency is necessary but not sufficient. Transparency is no guarantee of actual participation. For this to occur, the PCAOB must put in place structures that ensure investors have clear, consistent and recognized avenues for input. In doing so, the PCAOB should ensure that input is sought from underrepresented segments of the investor community.

Continue reading →

by J. Robert Brown, Jr.

These remarks have been edited for length and are being published in two parts. The following post is Part I of J. Robert Brown, Jr.’s prepared remarks delivered on November 6, 2020 at the 50th World Continuous Auditing & Reporting Symposium. As Mr. Brown noted at the beginning of his remarks, the views he expressed therein are his own and do not necessarily reflect the views of his fellow Board members or the staff of the PCAOB.

The concept of continuous auditing is critical to the future of the audit profession. The issue goes to the heart of the relevancy of the audit. I have, in the past, talked about audit relevancy and the risks that, without changes, the profession may confront extinction.[1]

My view was, and still is, that the role of the auditor in providing assurance for information outside of the financial statements should be modernized. This type of disclosure is increasingly used by investors and other participants in the capital markets. Investors rely on non-GAAP measures, key performance indicators, and environmental, social, and governance (ESG) metrics to make investment and voting decisions.

I believe that the Public Company Accounting Oversight Board (PCAOB) is in a good position to lead the discussions on the role, if any, of auditors, in providing assurance on these metrics.

Continue reading →