SEC Chief Accountant Releases Statement on the Responsibilities of Lead Auditors When Other Auditors Are Involved

SEC Chief Accountant Paul Munter has released a statement on the responsibilities of lead auditors when high-quality audits involving other auditors are being conducted. Mr. Munter observed that it is the role of the lead auditor, and especially the lead engagement partner, “to ensure investor protections by safeguarding against engagement performance failures due to inadequate planning, supervision, and oversight of other auditors.” Specific topics addressed in the statement include the following:

• The impact of other auditors in a global audit.
• Observations related to the use of other auditors.
• The importance of quality controls when using the work of other auditors.
• Roles of network firms.
• Independence considerations for network-member firms.
• Good practices for audit committees and issuers.