CAQ Snapshot: March 2019

Wednesday, March 27, 2019

CAQ Weighs in on Earnings Releases and Quarterly Reports

In March, the Center for Audit Quality (CAQ) provided input via comment letter to the Securities and Exchange Commission (SEC) on its Request for Comment on Earnings Releases and Quarterly Reports. The letter conveys the CAQ’s belief that “the current periodic reporting system provides investors, management, and boards with reliable, timely, and important information.” Through the lens of the public company auditing profession, the letter offers perspective, identifies challenges, and makes specific recommendations on the following topics:

  • Benefits of Existing Safeguards Related to Form 10-Q
  • Using the Earnings Release to Satisfy Some Form 10-Q Requirements
  • Change in Frequency Considerations
  • Opportunities for Disclosure Effectiveness in Interim Reporting

“We urge the Commission to continue to engage in robust outreach efforts to a wide variety of investors,” says the letter, “as they are the ultimate beneficiaries of company reporting.”

Register Now! April 1 Webcast on Critical Audit Matters

It’s not too late to register for the CAQ’s free webcast on critical audit matters (CAMs), taking place on April 1 at 1:00 p.m. (EST).The webcast offers the opportunity to earn 1.5 Continuing Professional Education credits and will cover early lessons about implementation of the CAMs requirement, how audit committees and investors can prepare for this significant change to the auditor’s report, and more.

Learn more about the webcast at its registration page. Participants will includeWesley Bricker, Chief Accountant at the SEC; Todd Castagno, Executive Director at Morgan Stanley; David Kane, Americas Vice Chair – Professional Practice at EY; Leslie Seidman, Independent Director at GE and Moody’s; and Megan Zietsman, Chief Auditor and Director of Professional Standards at the Public Company Accounting Oversight Board (PCAOB).

CAQ Video Highlights Value of Diversity in the Boardroom  

What is the state of diversity in the boardroom? Why are diverse viewpoints so valuable for boards? In the latest video from the CAQ, audit committee chairs at leading companies share their perspective on these questions, along with thoughts on steps that can be taken to foster boardroom diversity.

Appearing in the video are Barbara Duganier (Buckeye Partners, MRC Global, Noble Energy), Cynthia Glassman (Discover Financial Services, Navigant Consulting), Michele Hooper (PPG, UnitedHealth Group, United Continental Holdings), Blythe McGarvie (LKQ, Apple Hospitality REIT, Sonoco Products, Wawa), and Leslie Murphy (Kelly Services, Loop Industries).

Fornelli Provides Insights on Amplifying Women’s Voices

Staying true to yourself, paying it forward, “planting seeds,” and hosting difficult conversations: all of these are worthwhile approaches for women as they work to amplify their voices and push for gender parity, observes the CAQ’s Cindy Fornelli in a LinkedIn post to celebrate International Women’s Day on March 8.

“We need to make sure (1) that we are heard and (2) that we are having important—and sometimes challenging—conversations on gender equality,” Fornelli writes. Her post then offered related insights and pointers drawn from recent sessions of Women in Capital Markets, a CAQ initiative bringing together women leaders from across finance, governance, and policymaking.

Fornelli’s post was part of the CAQ’s monthlong focus on diversity, a key priority for the public company auditing profession. The CAQ’s theme for April will be “evolution.” Follow along and join the conversation on social media using #ConfidentTogether.

CAQ Congratulates Incoming Deloitte US CEO and Chair on Elections

The CAQ offered its congratulations to Joseph Ucuzoglu and Janet Foutty ontheir elections, respectively, as Chief Executive Officer and Chair of the Board at Deloitte US, effective June 2, 2019.

“Throughout their distinguished careers,” said the CAQ’s Fornelli, “both these individuals have demonstrated integrity, leadership, and foresight.” Noting that Ucuzoglu will succeed Cathy Engelbert as Deloitte’s representative on the CAQ’s Governing Board, Fornelli observed that “Joe has been a strong and articulate voice on the public company auditing profession’s critical role in the capital markets and how the profession works continually to improve that role for the benefit of investors and others.”

Fornelli also saluted Cathy Engelbert’s service to the CAQ as Governing Board Chair. “We are so grateful for her vitality, her dedication to enhancing public company audit quality, her grasp of the forces shaping the auditing profession, and her vision of the audit of the future,” Fornelli said.

Join the CAQ at These Upcoming Events

Webcast: Get the Facts on CAMs and More
April 1; Online 

Moderated by the CAQ’s Cindy Fornelli, this free webcast on the evolving auditor’s report and CAMs will feature SEC Chief Accountant Wesley Bricker; Todd Castagno, Executive Director, Morgan Stanley; David Kane, Americas Vice Chair – Professional Practice, Ernst & Young LLP; Megan Zietsman, PCAOB Chief Auditor and Director of Professional Standards; and Leslie Seidman, Independent Director, GE and Moody’s.

Corporate Board Member Boardroom Summit 
April 2–3; New York, NY 

Join the CAQ’s Erin Dwyer, Managing Director of Stakeholder Engagement and Communications, on April 2 for a discussion titled “Inside the Boardroom: Realities of Shareholder Engagement.” Panelists include Laurie Brlas, Board Member, Albermale, Exelon, and Graphic Packaging; Paul DeNicola, Principal, PwC’s Governance Insights Center; and Drew Hamby, Executive Director, Corporate Governance, Morgan Stanley.

Association of Securities and Exchange Commission Alumni (ASECA) Annual Dinner
April 8; Washington, DC

The CAQ is proud to sponsor the ASECA Alumni Annual Dinner, supporting ASECA’s mission to provide the opportunity for education and growth of industry professionals in the field of securities law.

CARE Conference – Financial Regulation Effectiveness and the Role of Academic Research
May 17–18; Lansdowne, VA

The CAQ’s Margot Cella, Senior Director of Research, will participate in a May 17 panel on standard setting. Joining Cella will be Paul Beswick, Partner, Assurance, EY; Sagar Teotia, Deputy Chief Accountant, SEC; and moderator Christine Botosan, Board Member, Financial Accounting Standards Board.