Enhanced disclosures about how a firm supports and monitors audit quality, including related metrics, can promote important dialogue and deepen the understanding of the investment a firm makes in its people and other resources, processes, policies, and technology. Our initial Audit Quality Disclosure Framework was published in 2019. This revised 2023 Framework retains the intent and principles of the original and has been updated to reflect recent developments.
The Audit Quality Disclosure Framework (Update) adheres to three key principles:
The Framework is voluntary and illustrative, as opposed to prescriptive or all-inclusive.
The Framework is flexible, giving firms the ability to tailor the information that is most relevant and meaningful to audit quality.
The Framework relates to disclosure of a system of quality control at a firm level, rather than at the engagement level.
Under these overarching principles, the Framework provides “Points of Focus” for seven Components of audit quality and certain examples of Firm-Level performance metrics:
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