October 31, 2016

CAQ Snapshot: October 2016

Audit and Corporate Governance Expert Joins CAQ Governing Board

Brian P. Anderson has been named to the CAQ's Governing Board. Anderson will serve as one of the CAQ’s independent board members.

“Brian brings decades of audit and corporate governance expertise to the Board, as well as providing his unique perspective from the viewpoint of an experienced CFO,” said CAQ Governing Board Chair and Deloitte LLP CEO Cathy Engelbert, in a statement. “I look forward to working with him to help promote the CAQ’s mission and to advance issues facing the future of the profession.”


Brian P. Anderson

Anderson is a member of the board of W.W. Grainger, Inc. and served as its Lead Director from 2011 to 2014. Prior to becoming Lead Director, he served as W.W. Grainger’s audit committee chair for 11 years. Additionally, he chairs the audit committees at PulteGroup, Inc. and James Hardie Industries, Plc. He is also the Chairman of the Nemours Foundation and served as Non-Executive Independent Chairman of A.M. Castle & Company. From 1998 to 2004, Anderson was Senior Vice President and Chief Financial Officer of Baxter International Inc. Earlier in his career, he was an Audit Partner with Deloitte & Touche LLP.

“Brian’s work inside the audit profession and as a corporate director and audit committee chair makes him a valuable addition to the CAQ Governing Board,” said Fornelli. “We welcome his experience and commitment to working with the public company auditing profession to enhance audit quality.”

"In an ever-evolving business and policy environment, the public company auditing profession faces both challenges and opportunities," Anderson said. “I'm pleased to join the CAQ's Governing Board as it confronts these challenges and strives to enhance audit quality for the benefit of investors and our capital markets.”

Anderson fills the seat vacated by Michele J. Hooper, President and CEO of The Directors’ Council, whom Fornelli saluted and thanked. “Michele has made significant contributions to the CAQ Board during her tenure, leading initiatives to improve the detection and deterrence of financial reporting fraud and advocating for greater transparency for investors.”

New CAQ Website Offers Resources on Careers in Audit

The CAQ launched a new website, DiscoverAudit.org, to provide information about careers in public company auditing, opportunities the profession offers, and how to join the next generation of auditors. The website features resources designed for students, parents, school counselors, and educators.

 

 

 

DiscoverAudit.org offers a wide variety of materials including:

  • Toolkits on a career in auditing, designed for both a high-school and college audience
  • Fact sheets about the profession
  • Videos featuring real-life auditors explaining their day-to-day work
  • Resources for preparing for a career in audit and for taking the CPA exam
  • Profiles based on real-life auditors and the career paths they have chosen
  • A forum for students and educators to ask auditors questions or arrange a classroom visit

New CAQ Alerts Summarize Potential Risk Areas for Upcoming Audit Cycle

In October, the Center for Audit Quality (CAQ) published two member alerts that can help public company auditing firms address potential risks in a proactive and accelerated manner.

The first of these alerts, Select Auditing Considerations for the 2016 Audit Cycle, identifies and discusses some of the more judgmental or complex audit areas for the upcoming audit cycle, including some of those identified by the Public Company Accounting Oversight Board (PCAOB) through its inspection process and published in recent PCAOB Staff Inspection Briefs.

The second of these alerts, Select Auditing Considerations for the 2016 Audit Cycle for Brokers and Dealers, provides considerations for the 2016 audit cycle that may be relevant for audit and attestation engagements of brokers and dealers registered with the U.S. Securities and Exchange Commission (SEC), including areas that have recently been the subject of attention and focus by the PCAOB in its inspection process.

Commentary: Fornelli Provides Cybersecurity Insights

In keeping with National Cyber Security Awareness Month, the CAQ's Cindy Fornelli penned two cyber-themed commentaries in October. In the first, published by Investor's Business Daily, Fornelli observes that the CAQ's Main Street Investor Survey finds that investors are overwhelmingly confident in U.S. capital markets. Yet, she adds, the survey also reveals significant concerns among investors about cybersecurity threats to markets. "The next president would do well to pay attention to their concerns," she says.

Fornelli, in a subsequent LinkedIn Influencers post, outlines principles that can help guide policymakers and the private sector as they mobilize together and individually to address cybersecurity challenges. "We should recognize that our dynamic free-market system is a potent weapon in this fight," she writes.

For more on the auditor's role in cybersecurity, visit the related resource pages from the AICPA and the CAQ.

"Profession in Focus" Welcomes ISA's Clinton, Deloitte's Platt

In October, the CAQ added two new episodes to its "Profession in Focus" video series. The first features Larry Clinton, President and CEO of the Internet Security Alliance. Clinton discusses the economic drivers of cybersecurity threats, the cybersecurity role of corporate boards and auditors, and what keeps him up at night.

In the subsequent episode, William Platt, Global Regulatory Leader at Deloitte Touche Tohmatsu, comments on the profession's transformative focus on continuous improvement, the importance of remaining agile in dynamic economic conditions, and the nature of global regulation. "From an audit profession regulation standpoint," he says, "regulators are more connected today than they’ve ever been."

Join the CAQ at These Upcoming Events

Financial Times ODX

Join Cindy Fornelli for an interview with Aulana Peters, Director of the Sustainability Accounting Standards Board (SASB), on “Sustainability Revisited: From Compliance to Integration” at 3:45pm.

November 2, 2016; New York, NY (Website)

Corporate Governance Awards

The CAQ is honored to serve as a sponsor and judge at the Corporate Secretary’s 9th Annual Corporate Governance Awards Ceremony.

November 3, 2016; New York, NY (Website)

Women Corporate Directors America’s Institute

We encourage women corporate directors to join us at the America’s Institute. The CAQ will lead a dinner discussion on the “Board and Audit Committee’s Roles Overseeing Cybersecurity Risk Management.”

November 3-4, 2016; Miami, FL (Website)

ADS Orientation Conference

The CAQ and AICPA are partnering to bring you this year’s Accounting Doctoral Scholar’s Orientation Conference. We hope to see our academic friends in Chicago!

November 4-5, 2016; Chicago, IL (Website)

Discover Audit On-Campus Event at University of South Carolina

Stop by Level 1 of the Moore School of Business from 10:00 a.m.–3:00 p.m. to ask visiting auditors questions about the profession and win prizes!

November 10, 2016; Columbia, SC

FEI Hall of Fame Gala

As a proud sponsor of FEI’s 11th Annual Hall of Fame Gala, the CAQ congratulates the nominees and honorees.

November 13, 2016; New York, NY (Website)

ACGA Annual Conference

We look forward to seeing our international governance colleagues at the Asian Corporate Governance Association’s Annual Conference.

November 14-16, 2016; Tokyo, Japan (Website)

NACD Directorship 100 Gala
The CAQ is honored to sponsor the NACD Directorship 100 Gala and congratulates the NACD on its 10th D100 event.
November 30, 2016; New York, NY (Website)

SASB Annual Symposium
Join us at the SASB Symposium where Cindy Fornelli will moderate a panel discussion with Jeanette Franzel, Board Member at the PCAOB, and Jeff Thomson, CEO of IMA, on “The Future of the Profession: Emerging Questions for Accountants.”
December 1, 2016; New York, NY (Website)

AICPA National Conference on Current SEC and PCAOB Developments
The CAQ is proud to sponsor this year’s AICPA National Conference. Cindy Fornelli will help kick off the conference on Dec. 5 with remarks on the future of the auditing profession and an update on the CAQ.
December 5-7, 2016; Washington, DC (Website)

2016 Millstein Governance Forum
The CAQ is a proud supporter of the Millstein Center and its 2016 Governance Forum exploring “Governance, Leadership, and the Future of the Corporation.” Registration is now open!
December 7, 2016; New York, NY (Website)

Anti-Fraud Collaboration Webcast
Join the Anti-Fraud Collaboration for a webcast discussion with Kara Novaco Brockmeyer, Chief of the SEC’s Foreign Corrupt Practices Act Unit; Rodney Chase, Independent Director and Audit Committee Member; Timothy Hedley, Partner at KPMG, LLP; and Fiona Philip, Partner at Sidley Austin, LLP, on the topic of “SEC Investigations: Are There Benefits to Cooperation and Self-Reporting?”
December 13, 2016; Washington, DC (Register Here)