The issue

The Public Company Accounting Oversight Board (PCAOB) has asked for stakeholder input on its strategic priorities, presenting an opportunity to influence the future direction of audit regulation and oversight. As auditing evolves through advances in technology, changing market dynamics, and increasing regulatory expectations, it is critical that oversight frameworks support both audit quality and the long-term sustainability of the profession.

Practitioners, particularly those in small and midsize firms, face growing challenges related to regulatory complexity, technology adoption, talent development, and compliance costs. At the same time, regulators must ensure that standards and oversight mechanisms keep pace with innovations such as artificial intelligence (AI) and advanced data analytics while maintaining investor confidence and audit quality.

 

Our position

The PICPA supports a modern, forward-looking approach to audit oversight that strengthens audit quality while fostering innovation, competition, and sustainability within the profession. Specifically, the PICPA advocates for:

• Responsible use of emerging technologies, including AI and advanced data analytics, in the audit process.
• Development of a comprehensive PCAOB technology strategy to help regulators and firms adapt to evolving audit methodologies.
• Practical, scalable auditing standards that recognize the operational realities of firms of all sizes, particularly small and midsize practices.
• Greater transparency, consistency, and balance in the PCAOB's inspection and enforcement activities.
• Modernization of auditing standards and regulatory frameworks to reflect current and emerging audit practices.
• Regulatory approaches that protect investors while avoiding unnecessary burdens that could reduce competition and participation in the public company audit market.

Status: The PICPA believes effective audit oversight should promote high-quality audits, encourage innovation, and ensure that the profession remains equipped to meet the needs of investors, businesses, and the public.

Read PICPA's full comment letter to the PCAOB – May 12, 2016

Reviewed June 2026