Public Company Accounting Oversight Board

Well, I guess we'll jump into it.

I know last time we had you on the podcast, Brian, we caught up on the PCAOB and we just had some changes with leadership at the SEC, but now we're starting to see some of that flow through at the PCAOB.

We have a new board at the PCAOB.

They just recently put out their strategic plan and updated their standard setting agenda.

So Brian, what stands out to you from the PCAB, the biggest thing that you're seeing from their changes?

Again, I think relatively other than maybe the EQCF, uncontroversial, and we expect the SEC to move forward with the approval on that imminently.

Oh, that's great.

Well, maybe turning back to one of the things we talked about at the beginning, Brian, is that, you know, we have new board members at the PCAOB and you talked about transparency and seeking input from outside voices.

Now, why is that important? And I didn't say this when I talked about all the different things that we do, but we spend a tremendous amount of time paying attention to what the IAASB is doing.

The IAASB, of course, issuing international standards on auditing and the PCAOB issuing auditing standards for U.S. issuers, right? SEC registrants.

So, and why do we do that? Why? Because number one is, if if they're doing something that helps audit quality and it should apply in our standards we want to obviously make sure we do that but but on top of that um you know the typical auditor in the u.s or or i would say you know except for maybe those only auditing a couple very small non-profits really have to pay attention to both the international standards the u.s you know u.s gap And then possibly also the PCAV standards if they also do issuer audits.

So, and by the way, you don't need to be a real, real large firm to get some engagements where you might be, say, doing a component audit.

In July 2026, the company signed a non-binding letter of intent to acquire 51% of Junjiang Enterprise, a Taiwan-based maker of precision industrial and semiconductor automation equipment.

The proposed all-stock exchange ties the shares Nightfood would issue to performance shown in an anticipated PCAOB audit.

That structure links what the company pays to verified results.

TechForce also plans to pursue two complementary revenue channels.

The IASB writes IFRS, and the FASB writes USGAP.

The SEC, the Securities and Exchange Commission, and the PCAOB, the Public Company Accounting Oversight Board, do not write USGAP.

IFRS and US GAAP still differ on LIFO, development costs, write-down reversals, and where interest paid sits.

No reconciliation is required, so compare across systems with care.

The interesting part, and I want to pause here, and I'm going to take a page out of your book, the so what and the why.

I would venture to say that there are a number of resource managers probably starting off in their career that hear things like ISQM1 or in the U.S., you know, PCAOB inspection and might not necessarily know what that means.

So to be very, very clear, if something goes wrong, whatever that might be from a regulatory perspective, It's really bad for your firm, right? Just to make it really, really clear.

Firms can get fined.

The other thing that I'd say.

and I love this concept, is we also have people that are, again, in different industries or perhaps in the public accounting industry that don't necessarily support that type of work that would be reviewed.

So for example, the PCAOB, certain firms, big four with very robust practices around this type of work, will get reviewed every year.

There are others that will get reviewed, let's say, tri-annually or not at all.

And this is going to be a very big win for small firms because if they were registered and had to do this with no intention other than just being registered, that would be a huge hit.

And I think the PCAOB recognized that that – could affect their registration rates.

Absolutely.

There's a lot of small partnerships out there.

So this is one of those commentaries that they did push back because of of increasing PE and just things like that that come into play.

So that was one of the things that people did disagree with.

However, the PCAOB disagreed further with this implementation than they did with the pushback.

Right.