December 11, 2013

Updates to the Auditor’s Reporting Model Should Be Practical and Add Value, Says CAQ’s Fornelli

Washington, D.C. – CAQ Executive Director Cindy Fornelli released the following statement as the CAQ filed its comment letter on the PCAOB proposed standard to update the auditor’s reporting model:

“The CAQ is supportive of efforts by the PCAOB and others to enhance the auditor’s reporting model to provide additional information in an increasingly complex and global marketplace and to enhance transparency for investors and other financial statement users. 

“Updates to the auditor’s reporting model should be practical and operational, add value for investors, and enhance—or at least maintain—audit quality.

“As the PCAOB has acknowledged, the proposed standards to enhance the auditor's reporting model mark a watershed moment, and changes of this magnitude must be carefully considered. To that end, the CAQ has initiated a coordinated and collaborative effort with members of the public accounting profession to field-test the proposal. It will take several months for those members to conclude the field-testing and to analyze the results, but we look forward to sharing critical insights from this effort with the PCAOB and other stakeholders in the months ahead.

“Additionally, as the PCAOB contemplates this important project, we encourage the Board to continue to consider international efforts and to work to harmonize standards where possible to provide clarity and consistency.

“The CAQ appreciates the opportunity to comment on the PCAOB’s proposal and recognizes the Board’s thoughtful approach to addressing this complex issue. We welcome additional dialogue on the subject at the PCAOB’s planned roundtable in spring 2014.”

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About the CAQ:

The Center for Audit Quality (CAQ) is an autonomous, nonpartisan 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., the CAQ is affiliated with the American Institute of Certified Public Accountants. 

www.TheCAQ.org

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