Case Studies
A collaborative effort of the Anti-Fraud Collaboration, these case studies are educational tools for all members of the financial reporting supply chain, as well as students. Participants in case study teachings start with a hypothetical scenario about a fictional company dealing with a fraud. Guided by an instructor, they then discuss what could have been done to address the situation.
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Access to Audit Personnel Grant Program
The CAQ, in connection with the Auditing Section of the AAA, established a program designed to facilitate accounting and auditing academics’ ability to obtain access to audit firm personnel to participate in their research projects.
Anti-Fraud
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Publications 04.05.21
Fraud and Emerging Tech: Artificial Intelligence and Machine Learning
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Comment Letter 02.01.21
IAASB: Discussion Paper, Fraud and Going Concern in an Audit of Financial Statements
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Publications 01.12.21
Audit Committee
Policymakers across the globe increasingly recognize the vital role of audit committees and their importance to audit quality. In close collaboration with partner organizations, the CAQ is actively engaged in policy developments related to audit committees.
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Newsletter 03.24.23
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Publications 03.22.23
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Video 02.28.23
Audit Committee Insights
Audit Committees
Audit Committee members are an essential component to the health of our financial reporting ecosystem and capital markets. While our economy is constantly evolving, so is the role of audit committee members. Policymakers, investors, and other leaders across the globe increasingly recognize the vital role of audit committees and their importance to audit quality. In close collaboration with partner organizations, the CAQ is actively engaged in developments that impact audit committees and provides valuable resources, current policy information, and tools to support audit committees with their responsibilities.
Audit Quality
Auditors are highly skilled at adapting and problem solving, without sacrificing the audit quality on which our capital markets and investors depend. It is no surprise that under unprecedented circumstances, long-term investments in training and technology enabled the profession to quickly transition to remote work. Many factors lead to a quality audit, but a combination of auditor expertise and independence coupled with constant innovation and technology bolsters the level of trust and confidence in company financial statements and forms the basis of audit quality—and, therefore, value to capital markets.
Audit Quality Indicators
The CAQ has been at the forefront of the movement to develop quantitative and qualitative metrics regarding the audit—commonly referred to as audit quality indicators (AQIs)—that could be used to better inform audit committees about key matters that may contribute to the quality of an audit.
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Publications 03.22.23
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Publications 11.30.22
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11.10.21
Auditor Reporting
Engaging constructively with policymakers and key stakeholders, the CAQ and its members have made substantial and practical contributions to ongoing efforts to enhance information presented in the auditor’s report to investors and other users.
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Publications 03.22.23
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Newsletter 01.07.21
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Alert 12.07.20
Auditors
Auditors play a key role as independent gatekeepers in the financial reporting ecosystem that underpins confidence in capital markets. Auditors build trust and confidence in information through the assurance services they provide. The auditing profession has steadily developed, systemized, and strengthened this trust and confidence-building role in providing assurance related to company financial statements and internal control over financial reporting. While auditors will continue the essential work of auditing historical financial statements, they can also bring their ability to enhance trust and confidence in other types of data and information issued by companies.
Audits of Brokers and Dealers
CAQ Symposium
The Annual CAQ Symposium brings together practice leaders and audit research scholars for a discussion of important issues and an exploration of how research can inform those issues. On the pages for each event, find videos, summaries, and panel participants.
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08.08.22
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Video 10.28.21
What’s happening in ESG reporting & assurance today? Top 5 Takeaways from CAQ Symposium 2021
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09.09.21
Classroom and Training Resources
The CAQ creates educational videos that can be used in the classroom or as training resources. Available videos include a “Video Vignettes” series that provides a view into the types of conversations that take place during an audit. Videos also include classroom-ready excerpts derived from an expert panel at a CAQ event.
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Publications 01.17.23
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Publications 03.07.22
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Statement 11.03.21
Statement of Support for the International Sustainability Standards Board (ISSB)
Collective Action in the Fight Against Fraud
Strong fraud deterrence and detection requires all participants in the financial reporting ecosystem to exercise extreme vigilance. In a heightened risk environment regulators, internal and external auditors, audit committees, and public company management must work together to effectively detect and deter fraud.
Connecting Auditors and Academics
Since its inception, the CAQ has sought to improve audit quality by increasing engagement between auditors and the academic community by fostering independent research related to the public company auditing profession.
COVID-19
Audit firms, standard-setters, regulators and the CAQ are developing a growing number of resources to help auditors, investors, management and audit committees understand the impact of the COVID-19 pandemic on financial reporting and oversight, and the CAQ is working to curate and distill that information for you.
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COVID-19 11.09.20
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COVID-19 10.06.20
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COVID-19 06.19.20
Cybersecurity
Cybersecurity threats are complex and an evolving issue with serious implications for public companies, their boards, investors, and other stakeholders, making it critical that the public company auditing profession does their part to support companies, boards, and others in addressing such threats.
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Publications 06.27.22
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Comment Letter 05.09.22
SEC: Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure
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Publications 04.05.21
Fraud and Emerging Tech: Artificial Intelligence and Machine Learning
Diversity and Inclusion
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01.05.22
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01.05.22
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Video 10.19.21
Effective Disclosure
The CAQ is a prominent voice in the discussion about effective financial disclosures. Convening key investor and financial groups, the CAQ has developed concrete recommendations on ways to facilitate investors’ access to meaningful information.
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Comment Letter 11.25.19
SEC: Update of Statistical Disclosures for Bank and Savings and Loan Registrants
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Comment Letter 07.29.19
SEC: Amendments to Financial Disclosures about Acquired and Disposed Businesses
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Video 11.20.18
Emerging Technologies
Emerging technologies are altering the financial reporting environment substantially, and this change is accelerating. For auditors and others in financial reporting, the CAQ provides insights on the benefits and risks of technology developments.
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Publications 05.16.19
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Publications 01.12.20
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Video 04.09.19
Ensuring Reliability, Quality, and Independence in Public Company Audits
The CAQ is dedicated to enhancing investor confidence by supporting the public company auditing profession every day to improve audit quality and enhance auditor independence, creating a solid foundation of financial reporting that benefits investors in the United States.
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04.21.21
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10.13.20
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08.17.20
Fair Value Accounting
The CAQ has engaged on the issue of fair value (or mark-to-market) accounting, regarding both its usage broadly in the markets and in the context of auditing fair value measurements.
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Alert 03.02.18
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Publications 03.12.09
CAQ Testimony: “Mark-to-Market Accounting: Practices and Implications”
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Meeting Highlights 06.12.97
Future Talent
Are you purpose-driven? Are you a natural problem solver with an unquenchable curiosity? Are you fascinated by the inner workings of companies and financial markets? Then a career in audit may be right for you.
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01.05.22
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Video 10.05.20
Profession in Focus: A Conversation with EY’s Ken Bouyer on Inclusiveness Recruiting
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06.04.20
ICFR
Robust internal control over financial reporting (ICFR) is a keystone of investor confidence. The CAQ has advanced the discussion around ICFR and produced a range of resources on the issue.
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11.18.20
Perspectives on Management Review Controls: Challenges and Solutions
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Alert 05.01.20
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Alert 02.07.20
IFRS
In an increasingly interconnected global economy, market participants are considering whether it is possible or desirable to move toward a more uniform global “language” for financial reporting. As the discussion has taken place around International Financial Reporting Standards (IFRS), the CAQ has been an active voice.
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Statement 11.03.21
Statement of Support for the International Sustainability Standards Board (ISSB)
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Newsletter 01.07.21
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Alert 12.07.20
Independent Standard Setting
The CAQ has been outspoken against policy provisions that would interfere with the independence of the accounting and auditing standard-setting processes.
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Statement 11.03.21
Statement of Support for the International Sustainability Standards Board (ISSB)
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Newsletter 01.07.21
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Alert 12.07.20
International Practices Task Force Inflation Discussion Documents
International Practices Task Force Meeting Highlights
Investors
The CAQ works to increase investor trust in the capital markets by promoting and developing high-quality performance from the public company auditing profession. A cornerstone of our strong U.S. capital markets is the trust investors place on audited financial statements when making critical decisions. Our resources provide information for investors on developments in the auditing profession, oversight and governance of public companies, and leading practices in the field of audit.
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01.05.22
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Publications 12.08.21
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11.10.21
Mandatory Firm Rotation
The CAQ has been a leading voice on the issue of mandatory audit firm rotation, which has significant implications for investors, audit committees, public company auditors, and the markets.
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Comment Letter 12.14.11
PCAOB: Concept Release on Auditor Independence and Audit Firm Rotation
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Comment Letter 02.14.14
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Comment Letter 12.14.11
PCAOB: Concept Release on Auditor Independence and Audit Firm Rotation
Policymakers
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02.01.22
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02.24.22
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02.01.22
Public Policy & Technical Alert
Keeping CAQ members and stakeholders informed on significant public policy and accounting matters.
Research Advisory Board Grant Program
The CAQ and the public company auditing profession are dedicated to supporting valuable independent academic research that can have important, real-world impact on audit quality and the future of auditing.
Risk Assessment Panel Discussion
The panel discussion videos are short excerpts from a CAQ event where practitioners and a leading academic provide perspectives on various issues related to the auditors’ risk assessment of a company. Included are the panelist bios and free short descriptions of each video excerpt.
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Video 01.09.18
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Video 01.08.18
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Video 01.07.18
Role of the Auditor
The CAQ has been at the forefront of the discussion around the role of the public company auditor and whether it should evolve to meet the changing information needs of investors.
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Publications 03.09.23
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Publications 11.16.22
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Publications 06.27.22
Sarbanes-Oxley
The enactment of the Sarbanes-Oxley Act (SOX) of 2002, a law aimed at fostering more reliable financial reporting and enhancing audit quality, was a watershed moment for investors, public company auditors, and the markets. The CAQ has worked to create understanding of the impact of this important law. It has opposed efforts to weaken SOX section 404(b), which provides investors with important assurance by the independent auditor regarding management’s representations about the effectiveness of their company’s internal control over financial reporting (ICFR).
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Video 08.01.19
Profession in Focus: Accelerated Filers, ICFR Audits, and Investor Protection
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Comment Letter 07.29.19
SEC: Amendments to the Accelerated Filer and Large Accelerated Filer Definitions
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Publications 05.09.19
SEC Regulations Committee Highlights
The CAQ at AAA
Since 2008, the CAQ has organized and participated in panel discussions at the Annual Meeting of the American Accounting Association (AAA).
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Video 10.09.20
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02.14.20
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Video 08.12.19
The Future of Corporate Reporting
The Sarbanes-Oxley Act of 2002 (SOX) was a watershed moment for investors, public company auditors, and capital markets. It established more reliable corporate reporting and auditor independence rules that enable stakeholders to trust the information provided by public companies. Two decades later, the U.S. is now widely recognized as the gold standard for auditor independence and thousands of high-quality audits are completed each year.
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Video 08.08.22
Pop-Up Conversation with Rep. Brad Sherman (D-Calif.) and Mark Baer of Crowe
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Video 07.27.22
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Publications 06.27.22
The Value of Auditor Independence
Our capital markets are an important engine for driving and maintaining our economic and societal well-being. These markets operate on information, and audited financial statements have long been a critical element of this information dynamic for their accuracy, transparency, and reliability. As investors make decisions, they depend on the information they receive from public company management. As a result, investors need—and in fact have long sought—an independent third party to provide assurance on the information provided by company management. Independence underpins the very credibility of the audit and, ultimately, its value to capital markets. It is also one reason why audit quality in the US has never been higher.
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Publications 10.20.22
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Publications 10.20.22
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10.13.22
Transparency of Audits
The CAQ has engaged on the issue of effectively enhancing transparency in the audit, endeavoring to facilitate access to meaningful information for financial statement users and other constituencies.
Video Vignettes
The vignettes provide insights into the types of conversations that occur between audit team members, as well as between auditors and preparers. The discussions captured in the videos can also be used in other teaching situations, as they highlight communications and interviewing techniques, professional skepticism, and how to navigate conversations on difficult and sensitive issues.