October 10, 2012

Practice Aid on Communications with Audit Committees about PCAOB Inspection Findings and Quality Control Measures

Washington, D.C. – The Center for Audit Quality (CAQ) today issued a practice aid intended to encourage audit firms to proactively communicate with audit committees about inspections findings and quality control improvements. The CAQ supports transparent, candid communication 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”), and believes that such communication supports the audit committee’s role in overseeing the external auditor. 

“Proactive engagement by auditors with audit committees regarding inspections and firm quality control improvement initiatives should provide audit committees valuable insights into the firm’s quality control program,” CAQ Executive Director Cindy Fornelli said. 

CAQ will be hosting a webcast on Communications with Audit Committees: Requirements and Leading Practices on October 24, 2012 from 2:30-4:00 PM ET to discuss the practice aid and share best practices.  In addition to being of interest to public accounting firms, the free webcast will assist audit committees in structuring discussions about PCAOB inspections with their auditors.

The webcast includes panelists from the PCAOB, the audit committee community, and the audit profession, and will provide an overview of required communications under new PCAOB Auditing Standard 16, Communications with Audit Committees. Panelists will also share unique insights and perspectives on leading practices that can be employed by auditors and audit committees to promote robust and candid dialogue on significant audit and financial statement matters and PCAOB inspections results.

The CAQ Practice Aid on discussions with audit committees about inspection findings and quality control measures is available on the CAQ’s website at: Audit Committee Communications

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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., the CAQ is affiliated with the American Institute of Certified Public Accountants. For more information, visit www.thecaq.org.