The Center for Audit Quality (CAQ) believes that transparent, candid communication between an audit committee and its independent audit firm about the firm’s internal quality control system, including information about the nature and impact of internal and PCAOB inspection results, supports the audit committee’s role in overseeing the external auditor. Thus, the CAQ supports appropriate interactions and communications between auditors and audit committees consistent with the objectives of the Public Company Accounting Oversight Board’s August 1, 2012, Release No. 2012-003, Information for Audit Committees about the PCAOB Inspection Process (the “Release”). The Release specifically identifies topics audit committees may wish to discuss with auditors in order to gain a better understanding of PCAOB inspections of audit firms.
October 12, 2012