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New CAQ Video Explains the Financial Statement Audit

Monday, February 6, 2012

~Second in Series of Educational Videos Designed to 
Inform Investors of System Protecting Their Interests~

Washington, D.C. – The Center for Audit Quality (CAQ) has released a short educational video that explains how independent external auditors evaluate a public company’s financial statements.

The production marks the return of the five members of “The System of Investor Protection” – those with key responsibilities in the financial reporting system. Joining External Auditor Ledger Lines are Audit Committee Chair Indy Pendent, CFO Lotta Charts, Internal Auditor Ida Figures and Regulator Johnny Law.

Ledger Lines explains the audit process, including the risk assessment, selection of the audit team, collection and documentation of evidence, and issuance of a written audit opinion as to whether the financial statements, as a whole, are free of serious or material misstatement.

“Since it was posted last October, over 3,300 individuals have viewed our first video on the ‘System of Investor Protection,’” said CAQ Executive Director Cindy Fornelli. “The second video employs the same dynamic, film-noir approach, and demystifies the financial statement audit in an entertaining and informative manner.”

To view the video, go to CAQ’s Investors page, a dedicated website that hosts a variety of resources for investors, including The Guide to Public Company Auditing and “Did You Know?” facts about the audit process.

Both videos are also available on social media channels YouTube, Facebook and Twitter.

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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. For more information, visit