May 9, 2011

CAQ Releases In-Depth Guide to Public Company Auditing

~~New Publication Gives Investors a Behind-the-Scenes
Look at the Financial Statement Audit~~ 

Washington, DC – The Center for Audit Quality (CAQ) has developed an In-Depth Guide to Public Company Auditing – a booklet designed for investors and those interested in understanding the external audit process for public companies and role the audit plays in our capital markets.

The In-Depth Guide to Public Company Auditing provides more detail about the audit process than the CAQ’s 2009 Guide to Public Company Auditing, which is an introduction and overview of public company auditing. 

“The CAQ’s continuing dialogue with individual investors indicates that many in the marketplace do not fully understand the scope of the audit process and the responsibilities placed on public company auditors. The In-Depth Guide to Public Company Auditing will help to bridge that information gap,” said CAQ Executive Director Cindy Fornelli. “The new Guide describes how a public company audit firm decides to accept a new audit engagement, how it assesses the risk that the financial statements contain material misstatements as part of determining the audit’s scope, and then how the auditors perform and report their findings – all in plain English.”

“The Guide will inform our future investor education initiatives,” Fornelli explained. “Last month, we launched the “For Investors” section of our Web site that provides information about auditing and links to financial literacy resources. We are planning to develop additional investor educational initiatives in the coming months.”

The Guide can be accessed here.

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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