June 10, 2008

CAQ Supportive of PCAOB’s New Reporting Rules

Washington, D.C. -- The Center for Audit Quality issued the following statement by Executive Director Cindy Fornelli in response to the Public Company Accounting Oversight Board’s (PCAOB) adoption of rules for annual and special reporting of information and events by accounting firms that are registered with the PCAOB: 

“The adoption of a framework for registered public company auditing firms to file annual and special reports with the PCAOB is a welcomed move that improves the ability of, and standardizes the means for, auditing firms to share important and useful information with their regulator, investors, and others. 

“The new reporting structure also provides a solid reporting foundation should the PCAOB also consider, at some point, the feasibility and the public benefit of additional auditing firm disclosures that may assist audit committees, investors and others as they assess each firm’s commitment to audit quality. 

“In addition, we appreciate that the PCAOB contemplates issuing practical, plain English guidance that will help firms, and particularly smaller firms, navigate the Board’s new Web-based reporting system.” 

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The Center for Audit Quality (CAQ) is an autonomous public policy organization serving investors, public company auditors and the capital markets. The CAQ’s mission is to foster confidence in the audit process and to aid investors and the markets by advancing constructive suggestions for change rooted in the profession’s core values of integrity, objectivity, honesty and trust. Based in Washington, D.C., the CAQ is affiliated with the American Institute of Certified Public Accountants. For more information, visit www.thecaq.org.