August 27, 2008

CAQ Applauds SEC for Approval of IFRS Roadmap

Washington, D.C. – The Center for Audit Quality (CAQ) issued the following statement from Executive Director Cindy Fornelli in reaction to the U.S. Securities and Exchange Commission’s (SEC) vote to seek public comment on a roadmap for U.S. companies to use International Financial Reporting Standards (IFRS):

“The CAQ applauds the SEC for its thoughtful approach to identifying the appropriate path and a reasonable timeline for U.S. adoption of a uniform set of high-quality global accounting standards. 

We realize significant work lies ahead in preparing for a transition, but believe IFRS has proven to be a reputable set of standards for preparing transparent financial information. 

If IFRS is to become the common language of the accounting world, however, it should speak to the world’s investors first and foremost. Sixty-two percent of U.S. investors surveyed by the CAQ last month said the creation of a single, uniform, international set of accounting standards would give them a higher level of confidence. Our hope is that IFRS will enable investors to more easily compare financial results of publicly traded companies in every corner of the world. 

Public company auditors stand ready to support the use of IFRS through appropriate training of professionals, encouraging the exercise of well-reasoned professional judgments under IFRS, supporting investor and issuer education efforts, and aiding the academic community in the education of teachers and students.” 

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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 markets by advancing constructive suggestions for change rooted in the profession’s core values of integrity, objectivity, honesty and trust. Based in Washington, D.C., the CAQ is affiliated with the American Institute of Certified Public Accountants. For more information, visit www.thecaq.org.