In Split Decision, SEC Approves New Audit Quality Control Standard QC 1000

On September 9, 2024, three of the SEC's five Commissioners voted to approve the new PCAOB Quality Control Standard QC 1000 A Firm's System of Quality Control. The new standard will substantially revise and refine public accounting firm QC requirements, but some have questioned certain aspects of the rule and the process leading to its adoption.

The new standard will replace current QC standards that were developed decades ago prior to the founding of the PCAOB. The current standards are general, high-level rules requiring audit firms to establish and maintain a system to provide the firm with reasonable assurance that its personnel comply with applicable professional standards, including by establishing policies and procedures related to independence, personnel management, client acceptance, engagement performance, and other matters.QC 1000 includes a number of changes to these pre-existing rules.Some of the most notable changes include: