Frequently Asked Questions
What is the CAQ?
Why was the CAQ established and how did it get its name?
What is the CAQ's mission and how is it carried out?
When did the CAQ begin operating?
Who leads the CAQ?
Who are the CAQ's members?
How can I become a member of the CAQ?
I'm a member and have a question or issue I'd like to discuss. Where can I go for assistance?
How is the CAQ structured?
How is the CAQ funded?
What is the relationship between the CAQ and the American Institute of CPAs?
How is the CAQ different from other organizations related to accountancy and auditing?
How does the CAQ interact with public policymakers? Does it have a political affiliation?
What issues is the CAQ currently addressing or planning to address?
What is the CAQ "Public Dialogue Tour?"
What kind of research has the CAQ commissioned?
How did the CAQ mark the 5th anniversary of the Sarbanes-Oxley Act?
Where is the CAQ headquartered?
How can I contact a member of the CAQ's staff?
How can I receive regular informational updates from the CAQ?
Is someone from the CAQ available to speak at an event or to my organization?
The Center for Audit Quality (CAQ) is an autonomous public policy organization serving investors, public company auditors and the capital markets. The CAQ’s mission is to foster confidence in the audit process and to aid investors and the capital markets by advancing constructive suggestions for change rooted in the profession's core values of integrity, objectivity, honesty and trust.
Why was the CAQ established and how did it get its name?
The current investment world is at a critical juncture—as investors and the public become even more deeply dependent upon the vibrancy of the capital markets, the markets themselves are becoming increasingly complex and global. This dynamic, coupled with changes in the regulatory environment, has generated considerable public dialogue. While public company auditors have been involved in this discussion, we strongly believe that investors and the markets will benefit from a more robust, forward-thinking public voice rooted in quality public company auditing.
The public company auditing profession established the Center for Audit Quality to lead that dialogue, with an emphasis on making public company audits more transparent, easier to understand and more reliable—in short, to ever improve their quality. Hence the organization's name: the Center for Audit Quality.
This undertaking is vital, because the ways in which public companies report, and auditors audit, financial information matters greatly to almost everyone. In the end, reliable financial information is the bedrock of investor confidence in our capital markets.
What is the CAQ's mission and how is it carried out?
The mission of the Center for Audit Quality is to foster confidence in the audit process and to aid investors and the capital markets by advancing constructive suggestions for change rooted in the profession's core values of integrity, objectivity, honesty and trust. To accomplish this mission, the CAQ works to make public company audits even more reliable and relevant for investors in a time of growing financial complexity and market globalization. It also has undertaken research, offered recommendations to enhance investor confidence and the vitality of the capital markets, issued technical support for public company auditing professionals, and helped facilitate the public discussion about modernizing business reporting.
When did the CAQ begin operating?
The Center for Audit Quality commenced operations in January 2007.
The Center for Audit Quality is led by a governing board that comprises leaders from public company auditing firms and the American Institute of Certified Public Accountants (AICPA), as well as public board members who bring an outside perspective to the CAQ’s agenda and activities. The Center also has a full-time executive director, Cindy Fornelli, who reports to the governing board. Board members and the executive director are committed to the concept that a robust public company auditing profession is fundamental to the public interest, the capital markets and to the overall mission of the organization.
James S. Turley, Chairman and CEO of Ernst & Young LLP, is Governing Board Chair. Michele J. Hooper, co-founder of The Directors’ Council, and Barry Melancon, President and CEO of the AICPA, are serving as the organization’s co-vice chairs.
All U.S. accounting firms are eligible for membership in the CAQ at some level. U.S. accounting firms registered with the Public Company Accounting Oversight Board (PCAOB) are eligible for membership. Associate membership is available for U.S. accounting firms not registered with the PCAOB. Non-U.S. firms are ineligible to join, but can subscribe to certain materials issued by the Center.
How can I become a member of the CAQ?
To apply for membership or associate membership, a firm must submit an application form to the Center. Visit our Membership webpage for more information about the benefits of CAQ membership and how to join.
I'm a member and have a question. Where can I turn for assistance?
The CAQ’s member relations staff stands ready to help. Call 1-888-817-3277 or, if you’d prefer, send an email to membership@thecaq.org.
The CAQ’s governing board meets regularly and provides the strategic vision and leadership to achieve our mission and guide our activities, the implementation of which is coordinated through the work of the Center Executive Committee (CEC). The CEC is comprised of up to three senior leaders from each governing board organization, as well as our executive director. The governing board also establishes committees, advisory groups and task forces as needed to carry out the Center's mission.
The Center for Audit Quality is self-supporting and is entirely funded by member dues.
What is the relationship between the CAQ and the American Institute of CPAs?
The Center is an autonomous public policy organization affiliated with the AICPA. It emerged from the restructuring and expansion of the AICPA’s Center for Public Company Audit Firms. The CAQ has a separate Governing Board and is funded by its own member firms. Our affiliation with the AICPA permits the two groups to collaborate on common issues, and the President and CEO of the AICPA is a member of the CAQ’s Governing Board.
How is the CAQ different from other organizations related to accountancy and auditing?
The establishment of the CAQ marks the first time that public company auditors, as a group, have joined with public leaders in the investor and corporate communities to discuss the issues facing the capital markets, conduct research on these topics and ultimately make recommendations that will foster confidence in the capital markets. All stakeholders have an interest in how the auditing profession adapts to a changing reality, and the auditing profession's unique perspective on these changes creates an obligation to lead the dialogue on how to meet them.
How does the CAQ interact with public policymakers? Does it have a political affiliation?
The CAQ is an autonomous, nonpartisan, nonprofit organization that serves investors, public company auditors and the markets. We engage in educational outreach to public policymakers, work to enhance the reliability and relevance of business information available to investors, undertake research, offer recommendations to enhance investor confidence and the vitality of the capital markets, issue technical support for public company auditing professionals, and help facilitate the public discussion about modernizing business reporting. As deemed necessary—based on the legal disclosure standard required for those who spend time educating public policymakers and engaging in related activities—the CAQ complies with those disclosure requirements mandated under the law.
What issues is the CAQ currently addressing or planning to address?
Since our formation in 2007, we have embarked on an ambitious effort to improve financial reporting, reached out to investors and other market stakeholders, forged solid relationships with federal regulators, and provided useful information to our nearly 800 members. Perhaps most importantly, the CAQ has made it possible for the public company auditing profession to speak with one voice on important issues and at a critical time.
The CAQ also has worked closely with two high-level federal panels: the Treasury Department’s Advisory Committee on the Auditing Profession and the SEC’s Advisory Committee on Improvements to Financial Reporting.
Going forward, serving investors and strengthening the integrity of the markets will remain central to the CAQ’s mission, and we intend to play an integral role in devising solutions to the challenges associated with today’s financial markets.
What is the CAQ "Public Dialogue Tour?"
As one of its first major initiatives, the CAQ launched a national Public Dialogue Tour to discuss potential improvements to the quality, relevance and integrity of financial reporting. We are visiting various regions of the country to hear directly from users of audited financial information in an effort to understand how business reporting might evolve to meet the information needs of all types of investors. The panelists and audience are drawn from leading regional issuers, investors, current and former regulators, government employees and academics. Members of the public company auditing profession are present at Public Dialogue Tour events but do not engage in the discussion.
We believe it is important to hold these events to listen to the thoughts and ideas of other stakeholders in the capital markets. The goal is to facilitate a vibrant and robust discussion and move toward mutual consensus on the issues and, hopefully, on the future of business reporting. When the 10-city tour has concluded, the CAQ intends to issue a report and recommendations to be shared with participants and policymakers. Visit the Public Dialogue Tour web page for more information.
What kind of research has the CAQ commissioned?
The CAQ has sponsored two notable surveys to date. The first found that a majority of the nation’s investors support the Sarbanes-Oxley Act (SOX) and believe rules mandated by SOX should not be eased. The findings were released in July 2007, in conjunction with a CAQ-sponsored event marking the law’s fifth anniversary. Read the Investor survey results for more details.
More recently, a March 2008 CAQ survey determined that more than three-quarters of audit committee members rated overall audit quality “very good” or “excellent,” and 82 percent say it has improved in recent years. This survey offered an unprecedented look at the views of key players in the fight against corporate fraud – corporate board members who oversee the preparation and auditing of public company financial statements. Read the Audit Committee survey results for more details.
How did the CAQ mark the 5th anniversary of the Sarbanes-Oxley Act?
The Sarbanes-Oxley Act (SOX) is a major focus for the CAQ. While SOX has led to important reforms and helped restore confidence in the markets, its fifth anniversary, on July 30, 2007, was an opportunity to explore ways to make the law’s implementation more efficient and effective. That day, the CAQ hosted the SOX Fifth Anniversary event, a panel discussion at the National Press Club in Washington, D.C., which brought together all of the key players in the law’s passage and its implementation. Event participants included the bill’s authors, former Sen. Paul Sarbanes and former Rep. Michael Oxley; the chairmen of the SEC and PCAOB, Christopher Cox and Mark Olson; former SEC Chairmen Harvey Pitt and William Donaldson; and former PCAOB Chairman William McDonough. In conjunction with the event, the CAQ released the results of a national survey on investor confidence, which showed that while investor confidence has increased markedly since the SOX’s enactment, significant work remains to solidify those gains.
Where is the CAQ headquartered?
The Center for Audit Quality is headquartered in the Homer Building at 601 13th Street, N.W., Suite 800N, Washington, D.C. 20005. A New York office – on the 19th Floor of 1211 Avenue of the Americas, New York, NY 10036 – houses our Professional Practice and Member Relations staff.
How can I contact a specific member of the CAQ's staff?
You can view the staff directory, which includes contact information.
How can I receive regular informational updates from the CAQ?
Look for the green box in the upper right hand corner of our home page. Simply insert your email address in the box that reads “Sign Up For Our Monthly Newsletter” and you’ll be added to our newsletter distribution list.
Is someone from the CAQ available to speak at an event or to my organization?
The CAQ has a Speakers Bureau. To inquire about the availability of one of our experts to participate in your event, contact Jeannie McPherson, our deputy director of communications, at 202-609-8048 or jmcpherson@thecaq.org.
