CAQ Snapshot: January 2015
Thursday, January 29, 2015
New CAQ Year in Review Highlights “Audit Quality in Action”
The Center for Audit Quality (CAQ) has published the latest edition of its annual Year in Review. The publication, this year titled “Audit Quality in Action,” documents key initiatives and accomplishments of the CAQ and the public company auditing profession during calendar 2014.
“Survey data shows that confidence in capital markets, audited financial statements, and investing in publicly traded companies is high,” write CAQ Executive Director Cindy Fornelli and Robert E. Moritz, Chairman and Senior Partner at PricewaterhouseCoopers LLP and Chairman of the CAQ Governing Board, in a joint introductory letter for the report. “Further strengthening that confidence requires a meaningful commitment to continuously enhance audit quality in tangible ways.”
Among other topics, the Year in Review highlights the CAQ’s work to help public company auditors improve their effectiveness, its support for independent research, its collaborative efforts around fighting financial reporting fraud and working with audit committees, and its engagement with regulators on many key issues, including the auditor’s report and audit quality indicators.
To request a hard copy of the Year in Review, please contact Andrew Gillies, CAQ Deputy Director of Communications, at email@example.com.
Fornelli: “Investors Could See Significant Improvments in 2015”
Hard work on key issues in corporate governance could come to fruition in 2015, and investors stand to benefit, writes CAQ Executive Director Cindy Fornelli in a January LinkedIn Influencer commentary. “The tide has been flowing with investors, not against them,” says Fornelli, who points to three key regulatory developments to watch in the coming year: enhancements to the auditor’s report, the development of audit quality indicators, and efforts to reform corporate financial disclosure.
In all three areas, she notes, regulators are likely to either issue or propose new rules. As these developments unfold, Fornelli urges readers to stay engaged in the policy process. “If we provide this engagement and input, we can improve the environment for investors,” she says. “Companies, markets, and the economy will benefit too.”
CAQ Comments ion Prososed Changes to OECD’s Principles of Corporate Governance
A well-functioning corporate governance system requires a shared understanding of transparency, accountability, board oversight, and respect for the rights of shareholders, said the CAQ in a January comment letter to the Organisation for Economic Co-operation and Development (OECD). The CAQ filed the letter in response to the OECD’s public consultation on enhancing its Principles of Corporate Governance.
In its letter, the CAQ suggested such enhancements should be principles-based to adapt to the continuing evolution of the corporate sector and capital markets. In particular, the CAQ said, changes to the Principles should support and enhance the role of the audit committee; provide appropriate flexibility; and, given the importance of policy consistency, consider implications across various major markets.
Anti-Fraud Collaboration Webcast Draws Thousands of Viewers
On January 8, nearly 2,900 people watched a webcast held by the Anti-Fraud Collaboration to discuss its new report, The Fraud-Resistant Organization: Tools, Traits, and Techniques to Deter and Detect Financial Reporting Fraud. As recapped in this recent story from Bloomberg BNA, webcast panelists covered a wide array of tips and topics flowing from the three central themes of the report: strong “tone at the top,” skepticism, and robust communications.
The CAQ is a founding member of the Anti-Fraud Collaboration, along with Financial Executives International, The Institute of Internal Auditors, and the National Association of Corporate Directors. Archived Collaboration webcasts can be found at the CAQ’s YouTube channel.