Washington, D.C. – CAQ Executive Director Cindy Fornelli released the following statement on the PCAOB proposed standard on the auditor’s report and the auditor’s responsibilities regarding other information in certain documents containing financial information:
“The PCAOB should be commended for its efforts on this important issue. There is agreement that the current financial reporting model can be improved to better serve investors and other stakeholders in a dynamic, global economy. The CAQ is committed to embracing calls for responsible change to the auditor’s report. We support a holistic approach that examines opportunities for improvement in the roles and responsibilities of all members of the financial reporting supply chain including those charged with governance as this will best serve the interests of financial statement users.
“I was encouraged that the Board acknowledged concerns with an 'auditor’s discussion and analysis’ approach. The CAQ believes that auditors should not be the original source of information about an entity; management’s responsibility should be preserved in this regard.
“The PCAOB has proposed disclosure regarding auditor tenure. As noted by several board members at today’s open meeting, there is no demonstrated correlation between auditor tenure and audit quality.”
“After a thorough review of the standards, the CAQ will provide detailed comments to the PCAOB.”
About the CAQ:
The Center for Audit Quality (CAQ) is an autonomous public policy organization dedicated to enhancing investor confidence and public trust in the global capital markets. The CAQ fosters high quality performance by public company auditors, convenes and collaborates with other stakeholders to advance the discussion of critical issues requiring action and intervention, and advocates policies and standards that promote public company auditors’ objectivity, effectiveness and responsiveness to dynamic market conditions. Based in Washington, D.C., the CAQ is affiliated with the American Institute of Certified Public Accountants.