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New CAQ Alerts Summarize Potential Risk Areas for Upcoming Audit Cycle

Monday, October 12, 2015

Alerts Address Key Auditing Considerations, Audits of Brokers and Dealers

Washington, DC – The Center for Audit Quality (CAQ) has published two new member alerts that can help public company auditing firms address potential risks in a proactive and accelerated manner.

The first of these alerts, Select Auditing Considerations for the 2015 Audit Cycle, reminds member firms of important auditing considerations for the 2015 audit cycle. It identifies and discusses some of the more judgmental or complex audit areas, many of which are also included in the PCAOB Staff Inspection Brief, published in October of 2015.

Select Auditing Considerations for the 2015 Audit Cycle covers the following topics: 

  1. Professional Skepticism
  2. Internal Control Over Financial Reporting (ICFR)
  3. Risk Assessment and Audit Planning
  4. Supervision of Other Auditors and Multi-Location Audit Engagements
  5. Testing Issuer-Prepared Data and Reports
  6. Cybersecurity
  7. Revenue recognition
  8. Auditing Accounting Estimates, Including Fair Value Measurements
  9. Related Parties and Significant Unusual Transactions

Given the recent PCAOB Staff Inspection Brief on the 2015 Inspections of Auditors of Brokers and Dealers­—and the fact that over 120 of the CAQ’s member firms audit brokers and dealers— the CAQ has also issued a companion alert, Select Considerations for the 2015 Audit Cycle for Brokers and Dealers. It addresses the PCAOB Inspection Brief and provides links to select guidance on inspection deficiencies identified by the PCAOB. 

“These alerts reflect the public company auditing profession’s strong commitment to continuously strengthening audit quality,” said CAQ Executive Director Cindy Fornelli. “As risks and regulatory priorities evolve, the CAQ will continue to update these resources regularly for the benefit of our members and others.”

While these CAQ member alerts highlight certain areas for consideration, they should not be relied upon as definitive or all-inclusive, and should be read in conjunction with the applicable rules, standards, and guidance in their entirety. 


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, DC, with an office in New York, NY, the CAQ is affiliated with the American Institute of CPAs. For more information, visit