Pop-Up Conversation with Rep. Brad Sherman (D-Calif.) and Mark Baer of Crowe

On July 12, 2022, the Center for Audit Quality joined Punchbowl News for a pop-up conversation featuring Rep. Brad Sherman (D-Calif.) and Mark Baer, CEO of Crowe LLP, to discuss capital market regulation and maintaining trust in a changing economy.

Rep. Sherman discussed the growing role of cryptocurrency and why the Securities and Exchange Commission (SEC) is the best-equipped agency to handle the regulation of digital assets.

Rep. Sherman emphasized that he is for the toughest possible regulation of the currency and warns that cryptocurrency is not a better currency unless individuals are intent on violating laws.

Following the conversation with Rep. Sherman, Julie Bell Lindsay, CEO of the Center for Audit Quality, and Mark Baer, CEO of Crowe LLP, explored changes to the corporate reporting system as a result of the Sarbanes-Oxley Act (SOX) of 2002.

Lindsay acknowledged the continuous improvement of audit quality over the past 20 years. The provisions of this legislation have also made the U.S. the gold standard for auditor independence.

When discussing the role of cryptocurrency in auditing, Lindsay highlighted the CAQ’s first-ever Audit Partner Pulse Survey, which delivers U.S. public company audit partner observations on a range of topics, including the overall outlook on the economy, business transformation, and quality of corporate disclosures.

The survey revealed that 69% percent of audit partners have not witnessed widespread use of cryptocurrency among public companies. The SEC has released new guidance regarding the accounting for crypto, but the currency has not significantly impacted financial statements.

Watch the full event below.