Volume 3, Issue 8

August 2009

I. CAQ Hosts Symposium on Academic Research in Auditing

On August 2, senior audit partners and academic researchers participated in a discussion hosted by the CAQ about the link between audit research and practice. The “Symposium on Academic Research in Auditing: Making it Relevant to Audit Practice” brought together these audit quality stakeholders to discuss the issues and challenges auditors face in pursuit of quality audits, and how academic research benefits and promotes that practice.

Cindy Fornelli with Symposium presenters Mark Peecher, University of Illinois, (left) and Bill Kinney, University of Texas

The symposium, held prior to the American Accounting Association’s (AAA) Annual Meeting, was hosted by CAQ Governing Board Chair Jim Turley of Ernst & Young and moderated by CAQ Executive Director Cindy Fornelli.Two leading academic researchers, Bill Kinney of the University of Texas and Mark Peecher of the University of Illinois, led the discussion. Participants included researchers who were awarded grants from the CAQ to pursue audit research projects and members of the CAQ’s Research Advisory Board.

Jim Turley (left) and Cindy Fornelli (second from right) with CAQ Grant Recipients (from second from left): Arnie Wright, Northeastern University; Jackie Hammersley, University of Georgia; Ken Trotman, University of New South Wales, Australia; and David Plumlee, University of Utah

Discussion topics included “The Historical Perspective on Effects of Research in Auditing on Standards & Practice” and “Contemporary Audit Research on Critical Professional Judgment Issues.” Two robust breakout sessions allowed the auditors and researchers in attendance to brainstorm about additional research that would help inform the profession, with topics including professional skepticism, professional judgment and audit processes.

CAQ Governing Board Chair and Ernst & Young President & CEO Jim Turley welcomes attendees

One attendee remarked that the symposium marked the first event he had attended that assembled as many senior level audit partners and leading academic researchers to discuss how these two very important groups could work together better.

The symposium marked the first collaboration between the CAQ and the Auditing Section of the AAA. Auditing Section President Audrey Gramling, Associate Professor at Kennesaw State University, credited the CAQ for bringing together auditors and academics. She noted that research that is current and relevant in today’s environment is available to auditors, but they don’t always know it’s out there. The CAQ hopes to collaborate with the Auditing Section on similar symposiums during future AAA conferences.

II. Former SEC Official Joins as Senior Director of Professional Practice & Research

The CAQ is pleased to welcome Josh K. Jones as Senior Director of Professional Practice & Research. A former Senior Associate Chief Accountant at the U.S. Securities and Exchange Commission (SEC) and a partner at Ernst & Young LLP, Jones will help guide the CAQ’s member services, professional practice and public policy activities.

“We are thrilled to be able to add Josh’s dual experiences conducting public company audits and working within the federal regulatory environment,” said Cindy Fornelli. “His background will greatly aid the CAQ’s efforts to serve investors and the capital markets by promoting high quality audits and transparency in financial reporting.”

Jones is the first participant in the CAQ’s professional practice fellowship program, which is conducted in collaboration with the CAQ’s member firms. Under the program, an audit partner from one of the Center’s member firms will participate in a one-year fellowship assisting the CAQ’s professional practice, public policy and research initiatives.

III. CAQ Commends Appointment of Dan Goelzer as Acting PCAOB Chair

The SEC recently appointed Daniel Goelzer as acting chairman of the Public Company Auditing Oversight Board (PCAOB). Goelzer, who has been a member of the PCAOB since its inception in 2002 and was reappointed to a second five-year term in 2007, replaced Mark Olson, who stepped down as Chair on July 31^st, on an interim basis.

In a statement, Cindy Fornelli said that “Dan will no doubt fulfill his added responsibilities in a manner that is guided by what he believes is best for investors – a philosophy that is effectively aligned with the CAQ’s commitment to foster high quality performance by public company auditors.

“We look forward to working with Dan in his new role as acting chairman and also want to take this opportunity to wish departing Chairman Mark Olson the very best in his future endeavors.”