Johnson Global partners with leadership of public accounting firms, driving change to achieve the highest level of audit quality. Led by former PCAOB staff, JGA professionals are passionate and practical in their support to firms in their audit quality journey. We accelerate the opportunities to improve quality through policies, practices, and controls throughout the firm. This innovative approach harnesses technology to transform audit quality. Our team is designed to maintain a close pulse on regulatory environments around the world and incorporates solutions which navigates those standards. JGA is committed to helping the profession in amplifying quality worldwide.
Through our work supporting firms across PCAOB interactions and the broader audit quality lifecycle, JGA is seeing several encouraging opportunities for firms to engage more directly with the PCAOB. From post-inspection outreach to targeted roundtables, Firm Consultation Process, and small firm forums, firms are being given opportunities to ask questions, share their experiences, and provide perspectives directly to PCAOB leadership and staff. We believe firms should take advantage of them. What We Are Seeing Post-Inspection Outreach The PCAOB's Division of Registration and Inspections (DRI) has recently reached out directly to smaller registered audit firms regarding their 2026 inspection experiences. The discussions are intended to provide two-way dialogue about what is working well, where communications or processes could be clearer, and how the inspection process can be more efficient and effective. The PCAOB is specifically seeking feedback on communications, interactions between inspection and engagement teams, and opportunities to improve the inspection process. A separate voluntary and confidential post-inspection survey is also being used to gather structured feedback from inspected engagement partners. Broker-Dealer Outreach The PCAOB is also convening a roundtable with broker-dealer auditors. The discussion is planned to focus on the PCAOB's interim inspection program for broker-dealer audits, including whether it is appropriately scoped to address significant risks. Practitioners are also being asked to share their perspectives on current audit risks and developments in the broker-dealer environment. Small Firm Forums The PCAOB is continuing its forums for auditors of small businesses and broker-dealers. According to the PCAOB, these forums give registered firms access to timely information about PCAOB activities and current issues affecting the profession while also giving PCAOB Board members and staff an opportunity to receive input directly from auditors. For 2026, the PCAOB has specifically described these forums as an opportunity for two-way dialogue . The events include participation from PCAOB leadership and staff from areas including the Office of the Chief Auditor, Division of Registration and Inspections, and Division of Enforcement and Investigations, as well as other regulators. Our Message to Firms: Participate These different initiatives point to something important: firms have opportunities to be part of the conversation. PCAOB Chairman Jim Logothetis has emphasized the importance of increasing stakeholder engagement and noted that the PCAOB should not be “a black box.” ¹ Greater dialogue gives firms an opportunity to better understand the PCAOB's perspectives, while also giving practitioners a channel to share what they are experiencing in practice. If your firm receives an invitation to participate in post-inspection outreach, a roundtable, forum, or similar PCAOB initiative, we encourage you to participate . Come prepared with questions, share constructive feedback, and use the opportunity to provide direct insight based on your firm's experiences. JGA works alongside firms throughout their audit quality journey, we can help identify topics or questions to raise with the PCAOB, think through prior inspection experiences, and prepare firm leadership for productive discussions. More broadly, this is part of how we view JGA's role as a long-term business partner to the firms we serve . Our relationships extend beyond a single inspection or project. Whether a firm needs support with inspection readiness, remediation, quality control, methodology, monitoring, training, technology, or another aspect of its quality function, our goal is to be a resource the firm can turn to as its needs evolve. If you have received an invitation from the PCAOB or have questions about one of these opportunities, reach out to your JGA team. We are here to help you prepare and make the most of the conversation. Source: ¹ Public Company Accounting Oversight Board, “Engaging with Audit Committees and Other Stakeholders Earlier and More Often,” October 15, 2026.
Johnson Global Advisory is proud to support Remember Nhu through the sponsorship of a child for one year—investing in prevention efforts that protect vulnerable children from exploitation. Remember Nhu is a nonprofit organization founded in 2003 with a mission to end child sex slavery through prevention. The organization identifies children at risk of being trafficked and provides them with safe housing, education, and holistic care—supporting their physical, emotional, educational, and spiritual development while creating opportunities for a safer future. “We are deeply grateful to JGA for their generous donation to Remember Nhu. Your support helps us continue our mission of ending child sex slavery through prevention by identifying vulnerable children and providing them with the care, protection, education, and opportunities they need to thrive. Because of your generosity, more children will be safeguarded from exploitation and given hope for a brighter future. Thank you for standing with us in the fight to protect children and create lasting change.” — Allison Phillips “Every child deserves the opportunity to grow up safe and supported,” said Jackson Johnson, JGA President. “We are proud to partner with Remember Nhu and help make a difference in a child’s life through this sponsorship.” About Johnson Global Advisory Johnson Global partners with leadership of public accounting firms, driving change to achieve the highest level of audit quality. Led by former PCAOB and SEC staff, JGA professionals are passionate and practical in their support to firms in their audit quality journey. We accelerate the opportunities to improve quality through policies, practices, and controls throughout the firm. This innovative approach harnesses technology to transform audit quality. Our team is designed to maintain a close pulse on regulatory environments around the world and incorporate solutions which navigate those standards. JGA is committed to helping the profession in amplifying quality worldwide. Visit www.johnson-global.com to learn more about Johnson Global.
Overview The September 2026 AICPA Banking Conference highlighted three transformational developments affecting financial institutions: artificial intelligence (AI), digital assets, and regulatory modernization . Collectively, these trends signal a shift toward more technology-enabled banking, increased regulatory clarity around digital assets, and heightened expectations for governance, risk management, and controls. Artificial Intelligence: From Experimentation to Operational Deployment AI is rapidly becoming embedded across banking operations, including fraud detection, Anti-Money Laundering and Know Your Client (AML/KYC) monitoring, predictive analytics, risk management, and audit processes. Regulators and auditors increasingly expect institutions to establish formal governance over AI usage, including controls over data quality, model risk, cybersecurity, explainability, and human oversight. Audit methodologies are also evolving, with greater use of data analytics, continuous monitoring, and full-population testing. Banks that successfully implement AI governance frameworks may achieve operational efficiencies while reducing regulatory and audit risk. Digital Assets: Moving into Mainstream Banking The conference's strongest strategic message was that digital assets should now be viewed as financial infrastructure rather than speculative investments . Stablecoins, tokenized deposits, tokenized securities, and blockchain-based payment rails are increasingly being evaluated by banks as potential sources of growth and competitive advantage. At the same time, these developments create risks related to deposit migration, payment revenue disruption, liquidity management, and regulatory compliance. Regulatory initiatives, including implementation of the GENIUS Act framework and proposed SEC crypto rules, are accelerating institutional adoption and providing greater clarity around permissible activities. Management teams and boards should evaluate how digital assets may impact their business models over the next several years. PCAOB Developments: Greater Focus on Quality Control and Technology The PCAOB continues to make quality control systems a central inspection priority. The amendments to QC 1000 would reduce implementation burdens by eliminating certain requirements, including the External Quality Control Function and fixed September 30 evaluation date, while providing firms more flexibility in assigning responsibilities. Inspection findings remain concentrated in allowance for credit losses (ACL), fair value measurements, investment securities, internal controls, and accounting estimates. Technology, cybersecurity, fraud risk, and AI are becoming increasingly important inspection areas. Public-company banks should expect auditors to devote significant attention to data reliability, management-review controls, and documentation supporting key estimates. SEC Developments: Reduced Compliance Burden and Reporting Reform The SEC's regulatory agenda reflects a broad effort to modernize reporting requirements and facilitate capital formation. Key proposals include optional semiannual reporting, expanded Emerging Growth Company accommodations, filer-status simplification, registered-offering reform, and a proposed framework for crypto-asset offerings. If adopted, these initiatives could significantly reduce reporting and compliance costs for many public banking organizations while expanding access to scaled disclosure accommodations. Banks should continue monitoring these proposals, as they could materially affect reporting obligations, internal controls, and capital markets activities. Boards and management should prioritize: Establishing formal AI governance and risk-management frameworks. Evaluating strategic opportunities and risks associated with stablecoins and tokenized financial assets. Preparing for increased auditor and regulator focus on ACL, estimates, data quality, and internal controls. Monitoring SEC reporting reforms and potential compliance-relief opportunities. Assessing how technology investments can improve efficiency while strengthening governance and risk management. Conclusion The conference signaled that the banking industry is entering a new phase in which AI adoption, digital asset integration, and regulatory modernization are becoming mainstream strategic priorities. Audit firms will need to adapt their methodologies, quality control systems, technology governance, and staff capabilities to address these developments effectively. Our JGA experts can help assess emerging risks, strengthen quality-control and audit methodologies, enhance documentation and inspection readiness, and implement practical approaches for auditing AI-enabled processes, digital assets, complex estimates, and internal controls.
