Although geared primarily toward informing registered audit firms about its inspection scope, focus and objectives for the 2017 audit cycle, the PCAOB's recently-issued Staff Inspection Brief serves as indirect guidance to audit committees and issuers in preparing for the company's annual audit.
According to the Brief, in addition to the key areas of inspection focus last year such as areas of recurring audit deficiencies like ICFR, inspectors will focus on audit areas affected by new economic factors such as Brexit, changes in auditors' processes/procedures relating to issuers' transition to/implementation of the new revenue recognition and leasing standards (including, e.g., the auditor's communications with the audit committee relating to management readiness or technical ability), and firms' implementation of the new Form AP reporting requirements.