June 28, 2018

CAQ Snapshot: June 2018

CAQ Announces Grants to Fund Academic Research in Auditing

The Center for Audit Quality (CAQ) has announced four grants to fund independent academic research on projects of interest to the auditing profession. The CAQ’s Research Advisory Board selected the following projects:

  • “How Can Audit Committee Support Improve Auditors’ Application of Professional Skepticism?” by Joseph F. Brazel, North Carolina State University; Anna Gold, Vrije Universiteit Amsterdam; and Tammie Schaefer, University of Missouri – Kansas City
  • “‘Alexa, Audit Loan Grades’: Enhancing Auditor Reliance on Artificial Intelligence through Anthropomorphism” by Sean Dennis and Benjamin P. Commerford of the University of Kentucky
  • “Encouraging Relational Thinking to Enhance Auditor Use of Audit Data Analytics Output” by Cassandra Estep, Bright Hong, and Kathryn Kadous of Emory University
  • “CAMs and the Spotlight: The Effects of Auditor Disclosure on Auditor Judgments and Decisions” by Michelle McAllister and Brian Fitzgerald of Northeastern University

Over the past 10 years, the CAQ has provided funding for 39 projects. “The CAQ and the public company auditing profession are dedicated to supporting independent academic research that can have important, real-world impact on audit quality and the future of auditing,” said CAQ Executive Director Cindy Fornelli in a press release announcing the grants.

Learn more about the CAQ’s research efforts, engagement with academia, and classroom resources on the CAQ website.

The Global CPA: Insights and Advice#BuildingaBedrock

What are the benefits of working at a firm with a global footprint in the public company auditing profession? What are the challenges? In this Q&A on LinkedIn, CAQ Executive Director Cindy Fornelli shares insights from CAQ Professional Practice Fellow Chris Alabi, CPA, ACA. On loan to the CAQ from PwC, Alabi has spent his career to date in the United Kingdom, France, and on both coasts of the United States. “Be curious and open to new experiences,” Alabi advises those interested in global careers. “You never know where they might take you!”

The Q&A post was part of the CAQ’s monthlong focus in June 2018 on “global citizenship,” a theme reflective of public company auditing’s global reach and significance. The CAQ’s theme for July will be “courage.” Follow along and join the conversation on social media using #BuildingaBedrock.

IPTF Updates Resource for Monitoring Inflationary Economies

IPTFThe CAQ’s International Practices Task Force (IPTF) has updated its resource, Discussion Document: Monitoring Inflation in Certain Countries. The information contained in this publication can help company management apply technical literature, in conjunction with internal controls over financial reporting, to reach a conclusion on whether a country’s economy should be considered highly inflationary. To learn more about the IPTF, visit its page on the CAQ website.

CAQ Provides Views on How Audit Committees Support Audit QualityOICU-IOSCO

"Audit committees play an essential role in protecting the interests of investors by broadly overseeing a company’s financial reporting process," said the CAQ in a comment letter to the International Organization of Securities Commissions (IOSCO). Filed in response to IOSCO’s Consultation Report on Good Practices for Audit Committees in Supporting Audit Quality, the CAQ letter highlighted a range of good practices for audit committees, as well as recent trends in audit committee reporting and disclosure.

CAQ Issues Planning Alert for Auditors of Brokers and Dealers

The CAQ has issued a new member alert: Audit Planning Alert for Auditors of Brokers and Dealers. Posing key questions for auditors of brokers and dealers to consider, the alert focuses on five areas: (1) auditing revenue, (2) auditing related party transactions, (3) auditing supplemental information, (4) performing examination engagements, and (5) performing review engagements.

Join the CAQ at These Upcoming Events

International Corporate Governance Network (ICGN) Annual Conference
June 25–28; Milan, Italy

We look forward to seeing our international investor and governance colleagues at ICGN’s annual conference. Join the CAQ at 3:30 p.m. on Tuesday, June 26, for a discussion moderated by Cindy Fornelli on “Fiduciary Duty in Challenging Times,” with Adrienne Monley, Head of European Stewardship at Vanguard; Alison Schneider, Director of Responsible Investment at AIMCo; Cornelia Ritz Bossicard, Director at Valora Holding AG and Ferguson Finance; and Marina Brogi, Director at Salini Impregilo and Banco Desio e della Brianza.

Future of Corporate Reporting
July 10; New York, New York

Join us at the Future of Corporate Reporting conference, where Catherine Ide, the CAQ’s Managing Director of Professional Practice and Member Services, will moderate the session “Cybersecurity Reporting: A Collaborative Approach to Cybersecurity Risk Management Disclosure.” Panelists include Anthony Basile, SVP and CISO at Alliance Bernstein; John Berkery, Partner at Mayer Brown; Shelley Leibowitz, Independent Director at E-Trade, Alliance Bernstein Holdings, and Endgame Security Solutions; and Bill Shimp, Assurance Partner at EY.

Webcast: Non-GAAP Measures—What Do They Say about Fraud Risk?
July 18; Online

Tune into the Anti-Fraud Collaboration’s July 18 webcast, during which an expert panel will share actionable recommendations that organizations can implement to deter fraud and misconduct. Moderated by Cindy Fornelli, this free webcast will feature Phil Billington, VP-Internal Audit at HCA; Heather Dixon, VP, Controller and Chief Accounting officer of AETNA; Keith Higgins, Chair of the Securities and Governance Practice at Ropes & Gray LLP and former Director of the Division of Corporate Finance at the US Securities and Exchange Commission; and Serena Wolfe, Partner, Global Real Estate, Hospitality, and Construction Assurance Leader at EY. The webcast offers the chance to earn 1.5 continuing professional education credits.

American Accounting Association (AAA) Annual Meeting
August 4–8; Washington, DC

At the AAA’s Annual Meeting, Cindy Fornelli will moderate the panel discussion “The Auditor’s Reporting Model: What Will the Future Bring?” on August 7, from 2:00 p.m. to 3:00 p.m. Panelists include Steve Glover, Associate Dean and K. Fred Skousen Professor, Brigham Young University; Josh Jones, Partner at EY; James Kaiser, Board Member at the Public Company Accounting Oversight Board; and Mike Santay, Partner, Audit Services, National Professional Standards Group at Grant Thornton LLP.

Save the Date: BDO Webinar on Cybersecurity Risk
August 22; Online

The CAQ’s Catherine Ide will join a cybersecurity panel discussion hosted by BDO. Featuring board members and audit and advisory professionals, the panel will examine various responsibilities and resources to aid companies in their management of cybersecurity risk. Registration and further event details are forthcoming.