CAQ Practice Aid: Discussions with Audit Committees About Inspection Findings and Quality Control Matters
Tuesday, January 1, 2013
The CAQ’s Practice Aid, Discussions with Audit Committee About Inspection Findings and Quality Control Matters encourages timely, forthright, and robust communication of both internal and Public Company Accounting Oversight Board (PCAOB) inspections between the independent audit firm and the audit committee. In developing a tailored communications plan, an independent audit firm should consider, among other factors, whether the issuer’s audit was selected for inspection by the PCAOB and, if so, the status of that inspection; information about the audit firm’s responses to the PCAOB findings with respect to the issuer’s audit; and the impact on the issuer’s audit from other PCAOB inspection findings. Communications to the audit committee should accomplish the objective of candidly conveying the steps the audit firm is taking to improve its system of quality control to address findings from internal inspections, peer reviews, and Part I and II of the PCAOB inspection report.