SEC Chief Accountant Releases Statement on Audit Quality

SEC Chief Accountant Paul Munter recently released a statement on the importance of audit quality to protecting investors. Mr. Munter noted that he is making these remarks in view of the PCAOB’s inspection finding that audit deficiency rates have increased. He noted that because risks continue to evolve, management needs to continually evaluate and adjust its systems and processes “to ensure that adequate systems and processes, coupled with a strong compliance culture, are in place to produce reliable, high quality financial statements and disclosures.” He also emphasized the importance of the auditor’s professional skepticism and an independent audit committee to enhancing audit quality.