CAQ Snapshot: July 2019
Thursday, July 25, 2019
CAQ Preps Investor Relations Pros for CAMs Conversations
Starting in the summer of 2019, auditors will be required to communicate critical audit matters (CAMs) in their auditor’s reports. Investors with questions about CAMs may turn to a company’s investor relations (IR) group for answers. To help inform IR professionals as they prepare for those conversations, the Center for Audit Quality (CAQ) has issued a new resource that answers common questions regarding CAMs. These questions include the following:
- What is a CAM?
- Do CAMs reflect something positive or negative?
- Will CAMs be consistent from company to company?
- How many matters likely will be CAMs?
- Will there be a CAM for every critical accounting estimate disclosed by management?
- What types of matters likely will be CAMs?
- How will investors use CAMs?
To complement this new resource, the CAQ also released a new episode of its video series, Profession in Focus, featuring Dennis McGowan, CPA. A CAQ Technical Director of Professional Practice, McGowan has taken a leading role in several CAQ projects related to auditor reporting, including the new CAMs resource for IR.
Comment Letter: CAQ Provides Profession Views to IAASB on Quality Management
In a comment letter filed in early July, the CAQ provided views to the International Auditing and Assurance Standards Board (IAASB) on a set of proposed standards related to quality management. Broadly, the CAQ expressed its support for the IAASB efforts to substantively enhance firms’ management of engagement quality and commended the Board for collaborating with other standard setters on these issues.
“We believe that collaboration is important to promote consistency and alignment of the requirements of quality management standards to minimize unnecessary differences or incremental effort that does not benefit audit quality,” said the letter, which provided a wide range of suggestions for addressing potential challenges in implementing the proposed standards.
For more perspective on quality control, watch a new Profession in Focusepisode featuring Vanessa Teitelbaum, CPA, Technical Director of Professional Practice at the CAQ. In the video, Teitelbaum discusses the importance of quality control for public accounting firms and touches on recent regulatory developments, including the IAASB proposals.
#AuditorProud Day on the Horizon
Mark your calendars! From dawn to dusk on September 26, the CAQ and its members will lead the annual social media celebration of auditors and the many benefits of careers in auditing. This year marks the fifth anniversary of #AuditorProud day. Whether you’re a newcomer or participating in your fifth blitz, be sure to join in the fun. Get moreinformation and resources at DiscoverAudit.org, and keep up with #AuditorProud day on Twitter, Instagram, and Facebook.
Did You Know? CAQ-Supported Research Available for Download
Over the past 11 years, the CAQ has provided funding for 44 academic research projects through its Research Advisory Board grant program. To date, 19 of these projects have been published in peer-reviewed journals, andfree access to these articles is available on the CAQ website.
#ConfidentTogether: Focus on Independence and Dialogue
Throughout 2019, the CAQ is shining a spotlight on the core values and themes that define the public company auditing profession. In July, the CAQ has highlightedindependence. August’s theme will be dialogue. Follow along and join the conversation on social media using #ConfidentTogether.
Join the CAQ at These Upcoming Events
August 8–10; Chicago, IL
The CAQ looks forward to exhibiting at the Annual Meeting of Beta Alpha Psi, an honor organization for financial information students and professionals.
August 10–14; San Francisco, CA
On August 12, CAQ Executive Director Julie Bell Lindsay will moderate the panel “Sustaining a Strong System of Quality Control to Enhance Audit Quality.” Joining her will be Abe Dymond of the Public Company Accounting Oversight Board, Heidi Schuetze of PwC, Chris Smith of BDO USA LLP, and Dan Sunderland of Deloitte & Touche LLP.
September 16–18; Minneapolis, MN
The CAQ is pleased to continue its participation with the Council of Institutional Investors at its 2019 Fall Conference. On September 17, Julie Bell Lindsay will participate in the session “Auditing Issues and Proxy Voting.” With her on the panel will be Michele Hooper, President and CEO, The Directors’ Council; Elizabeth Mooney, Accounting Analyst, Capital Group; Mary Morris, Investment Officer, California State Teachers Retirement System; and Sandra Peters, Head, Financial Reporting Policy, CFA Institute.
September 21–24; Washington, DC
We look forward to seeing our governance colleagues at the National Association of Corporate Director (NACD) 2019 Global Board Leaders’ Summit. On September 21, Julie Bell Lindsay will participate in the Small Cap Company Symposium.
September 23–24; Las Vegas, NV
At this Practising Law Institute event, the CAQ’s Catherine Ide, Senior Managing Director of Professional Practice and Member Services, will join Timara Marquis, Audit & Assurance Senior Manager at Deloitte & Touche LLP, for a session focused on internal control over financial reporting.