14 Lessons Learned from the PCAOB’s Conversations with Audit Committee Chairs

Recently, the PCAOB released its annual recap of its conversations with audit committee chairs. This past year, the PCAOB staff interviewed 272 audit committee chairs to come up with its findings, 78% of whom chaired a committee at a company audited by the six largest auditors. Here are 14 lessons learned from the recap:

1. Prioritize Open Communication

Audit committees should foster frequent, transparent dialogue with auditors. An open channel – whether through scheduled meetings or spontaneous calls – strengthens relationships and flags issues early.


2. Audit Firm Fit Matters

Discuss the auditor’s industry experience, technical expertise, and team continuity. These were top factors audit chairs cited for effective audits – and reasons firms were retained or replaced.


3. Use Inspection Reports Strategically

Audit committees should review PCAOB inspection reports and engage with auditors about findings and remediation steps, particularly when evaluating firm reappointment or considering a change.


4. Discuss Economic & Geopolitical Risk Exposure

Discuss how auditors address inflation, interest rates, supply chain issues, and geopolitical instability – audit strategy should reflect these real-world challenges.


5. Dive into Auditing Standards

Don’t stop at required communications. More than 60% of audit committees proactively engaged on revenue recognition, lease accounting, current expected credit losses (CECL), cybersecurity, and climate disclosures.


6. Push for Better CAMs

Audit chairs urged auditors to avoid boilerplate CAMs. Tailored language, clarity, and investor-friendly summaries should be audit committee expectations—not afterthoughts.


7. Scrutinize Emerging Tech in the Audit

Ask how auditors are using AI and automation—and whether it’s improving audit quality without replacing professional skepticism. Push for evidence of both efficiency gains and critical thinking.


8. Evaluate the Next Gen of Auditors

Chairs expressed concern about how new auditors will develop judgment in an AI-powered world. Oversight should include auditor development and tech fluency.


9. Be Tech-Forward—but Skeptical

Encourage innovation in the audit but discuss data risks, system complexity, and security issues. Tech should streamline—not confuse or compromise—audit quality.


10. CAM Question Checklist = Power Tool

Use the PCAOB’s CAM checklist to frame discussions:

  • Is it clear?
  • Is it specific?
  • Is it relevant and tailored?

Bring this to every year-end audit meeting.


11. Clarify Inspection Limitations

Remind the board that PCAOB inspections aren’t full audits. They assess samples, risk areas, and firm processes. Inspection findings shouldn’t be your only oversight lens.


12. Use Comment Forms to Prompt Change

Understand how PCAOB comment forms work, and ask auditors what issues they’ve received. These forms often drive preemptive improvements before reports are public.


13. Join the PCAOB’s Education Circle

Audit committee members should take advantage of PCAOB webinars and roundtables. They’re educational, free, and build knowledge around emerging risks and standards.


14. Bookmark PCAOB Resources

Leverage PCAOB’s “Information for Audit Committees” hub for inspection data, inspection basics, CAM guides, and more. Staying informed is part of fiduciary duty.

Authored by

Portrait photo of Broc Romanek over dark background

Broc Romanek