From the PCAOB website, review the information in "PCAOB Approves Five-Year Strategic Plan and 2019 Budget" (the PCAOB-approved 2018–2022 strategic plan). This strategic plan details five core goals a
Running head: THE PCAOB 2018 -2022 STRATEGIC PLAN AND 2019 BUDGET 5
The PCAOB, 2018-2022 Strategic Plan, and Year 2019 Budget
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The Public Company Accounting Oversight Board approved its 2018-2022 strategic plan and fiscal year 2019 budget on 15th November 2018 at Washington D.C. The strategic plan is obligated to serve as the budget’s establishment and direct the PCAOB's programs and operations.
The PCAOB’s 2018-2022 strategic plan entails new five values and five core goals along with supporting objectives to improve the quality, reliability, and transparency of auditing and financial reporting through responsive, forward-looking, and innovative oversight.
The core investments in personnel, processes, and technology are included in the 2019 budget. The implementation of this strategic plan is set to be achieved through the provision of inevitable resources by the core investments. The PCAOB values include; Integrity, excellence, effectiveness, Collaboration and accountability.
The PCAOB strategic goals and their various objectives are as follows; Goal one : Drive improvement in the quality of audit services through a combination of prevention, detection, deterrence, and remediation.
Objective one: Conduct inspection activities to facilitate more timely and relevant to our stakeholders.
Objective two: Better leverage economic and risk analysis to more effectively set standards, rules and guidance.
Objective three: Enforce accountability and deter improper conduct by addressing violations of PCAOB standards and rules, and related federal securities laws.
Objective four: Determine, develop and communicate indicators of audit quality.
Goal 2: Anticipate and respond to the changing environment, including emerging technologies and related risks and opportunities.
Objective one: Assess and address the impact of emerging technologies on the quality of audit services.
Objective two: Understand and consider investors’ audit expectations.
Objective three: Asses the changing information security environment and understand the related risks.
Goal 3: Enhance transparency and accessibility through proactive stakeholder engagement.
Objective one: Improve the timelessness, usefulness, and clarity of PCAOB information.
Objective two: Cultivate effective and dynamic dialogue with stakeholders.
Goal 4: Pursue operational excellence through efficient and effective use of our resources, information, and technology.
Objective one: Enhance our risk management and operational processes and capabilities.
Objective two: Collect, manage and use data to improve our internal processes and better inform our decision-making.
Objective three: Increase and optimize our information technology investments to strengthen our capabilities.
Objective four: Strengthen the protection f our sensitive and proprietary data.
Goal 5: Develop, empower, and reward our people to achieve our shared goals.
Objective one: Cultivate a high performing workforce trough effective recruitment, retention, training, performance management, and leadership development.
Objective two: Reward teamwork and eliminate organizational barriers to collaboration, transparency, and engagement.
Objective three: create a culture of inclusion that leverages the diversity of experience and perspectives of our people.
In goal five (Develop, empower, and reward our people to achieve our shared goals), this is the first objective to enhance the accomplishment of the strategic plan: Cultivate a high performing workforce through effective recruitment, retention, training, performance management, and leadership development.
The purpose of this objective is to achieve the set goal of high performing workforce through encouragement and motivation of the employees. Employees are very significant assets and they play a very important role in the success of all firms. Effective recruitment of qualified employees is a mandatory requirement for better performance.
The PCAOB is determined to ensure that the registered firms retain and train their employees to achieve the set goals and objectives. There is high need of employees’ motivation and encouragement through rewarding to achieve a high performing workforce. The PCAOB is set to show each value, betone the commitment to integrity and ethical professional conduct.
The board will reinforce the human capital through developing, training and empowering the next generation of leaders within their organization. The PCAOB will draw their attention to developing and carrying out a human capital strategic plan that fall into line with their talent management strategy and organizational priorities.
As an auditing practioner, the elements of the PCAOB’s strategic plan will make a major impact on my roles as an auditor through enforcing accountability and dissuade improper conduct of rules and federal securities laws. I will prioritize quality auditing through enabling the firms to prevent and remediate deficiencies in audit practices and provide timely and relevant feedback. Embrace the effects of emerging technologies to enhance quality-auditing services put into considerations the audit expectations of the investors.
Reference list
Public Company Accounting Oversight Board,
https/pcaobus.org/News/Release/Pages/PCAOB-five-year-strategic-plan-2019-budget.aspx
