May 13, 2013

CAQ Provides Perspectives on Understanding Audit Quality to PCAOB ahead of SAG Meeting

Washington, D.C. – In an effort to contribute to the goal of defining audit quality, the Center for Audit Quality (CAQ) today provided to the Public Company Accounting Oversight Board (PCAOB) a letter outlining its perspectives on components of an audit quality definition, beneficiaries of an audit, the role others have in impacting an audit, and how the most relevant audit quality indicators may be identified.

“The CAQ commends the PCAOB for its recent issuance of the briefing paper on audit quality indicators for review at this week’s Standing Advisory Group (SAG) meeting,” said CAQ Executive Director Cindy Fornelli. “The CAQ believes audit quality indicators could be used to better inform audit committees and other stakeholders about audit quality, and how it evolves over time.

“We feel it is appropriate to share our perspectives in advance of the SAG meeting in an effort to further the dialogue on this important topic,” said Fornelli.

In its letter to the PCAOB, the CAQ outlines the following: 

  • Components of an audit quality definition, 
  • Beneficiaries of an audit, 
  • Stakeholders contributing to audit quality and financial reporting, and 
  • Audit quality indicator’s selection criteria. 

As the PCAOB seeks additional feedback on its initiative, the CAQ hopes to continue to contribute to the evolving dialogue associated with providing a broader understanding of audit quality, its underlying elements, and potential indicators. 

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The Center for Audit Quality (CAQ) is an autonomous public policy organization dedicated to enhancing investor confidence and public trust in the global capital markets. The CAQ fosters high quality performance by public company auditors, convenes and collaborates with other stakeholders to advance the discussion of critical issues requiring action and intervention, and advocates policies and standards that promote public company auditors’ objectivity, effectiveness and responsiveness to dynamic market conditions. Based in Washington, D.C., with an office in New York, NY, the CAQ is affiliated with the American Institute of Certified Public Accountants. For more information, visit www.thecaq.org