PCAOB Proposal Aims to Balance Audit Quality and Firm Burden

The Public Company Accounting Oversight Board (PCAOB) has proposed amendments to its quality control standard (QC 1000) to strengthen audit quality while simultaneously reducing implementation challenges for audit firms. This move comes as the number of PCAOB-registered firms has declined, raising concerns about the health and competitiveness of the public company audit market, particularly for smaller issuers. The proposed changes seek to address overly prescriptive requirements and align more closely with international standards, aiming to make compliance more practical and scalable.