* Technological developments affecting today’s audits, including the use of software audit tools, and the audit response to risks associated with cybersecurity incidents, digital assets, and distributed ledgers.

* Audit firms’ actions addressing past inspection findings in areas of repeat deficiencies, including auditing internal control over financial reporting, revenue recognition, allowance for loan losses, other accounting estimates, and assessing and responding to the risks of material misstatement such as consideration of any changes in external factors affecting the company.

* Audit procedures on new accounting standards, including internal control effects regarding revenue recognition (ASC 606 and IFRS 15), lease accounting (ASC 842 and IFRS 16), current expected credit losses (ASC 326), and financial instrument accounting (ASC 815 and IFRS 9).

* Audit firms’ use of Audit Quality Indicators (AQIs) to monitor their audit work, including any discussions of AQIs with audit committees. 

* Implementation of the new auditor’s reporting model requirements, including understanding implementation experiences related to the auditor’s reporting of critical audit matters (CAMs). 

* Audit firms’ systems of quality control, including the firms’ cultures and their policies and procedures, and how firms promote consistency in audit quality. 

* Auditor independence, with particular attention to recurring deficiencies in firms’ monitoring procedures to identify independence violations. 

The PCAOB has advised audit committees to keep these areas of focus in mind, and to consider further engagement with the auditors to better understand their findings.