Washington, DC – The Center for Audit Quality (CAQ) released the following statement from Executive Director Cindy Fornelli on considerations for a future Public Company Accounting Oversight Board (PCAOB) inspections approach, as outlined by Board Member Jeanette Franzel at the 15th Annual Baruch College Financial Reporting Conference:
“The CAQ welcomes comments from Board Member Franzel regarding how the PCAOB’s inspection process can evolve as part of the Board's mission to enhance audit quality.
“Over the years, firms have invested—and will continue to invest—heavily in quality control at the firm and engagement levels, an effort that has been demonstrated by higher levels of audit quality. Just as the public company auditing profession is built on a commitment to a continuous cycle of improvement, it is important for the inspection process to evolve and continue to benefit investors and the capital markets.
“As the PCAOB explores changes to the inspection process, it will be critical to continue to engage in a robust dialogue with the profession and the public about how the Board is inspecting and evaluating the work of public company auditors.”
About the CAQ
The Center for Audit Quality (CAQ) is an autonomous, nonpartisan 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, the CAQ is affiliated with the American Institute of CPAs.