No surprises. Given the tumult in the markets and investor anxiety over the quality of audits performed over the past 12 months... expect the hammer to drop as PCAOB (SEC) investigations pick up. Beyond SPACs and Crypto fails (BTW.. isn't that enough!), expect more scrutiny on audits performed on public companies.
"Staff shortages at audit firms and trends in initial public offerings and mergers and acquisitions — including by special purpose acquisition companies (SPACs) — also increased audit risk and influenced PCAOB goal-setting, the agency said. “The current economic environment changes the risk landscape,” potentially increasing the incidence of fraud and other wrongdoing." (CFO Dive)
While it may be hard to assess the impact of inflation, supply chain disruptions and credit tightening on business results, there is no doubt that we will see the audit compliance storm heading this way. Hold on tight, grab the cash, and prepare for a bumpy ride as we weather the uncertainty. Let's hope for peace and stability and a return to summer fun!
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