June 30, 2015
Washington, DC – Center for Audit Quality (CAQ) Executive Director Cindy Fornelli issued the following statement on the concept release on audit quality indicators from the Public Company Accounting Oversight Board (PCAOB):
"The Center for Audit Quality commends the PCAOB for its ongoing efforts to create audit quality indicators. Audit quality is critical to the effective functioning of our capital markets and an important element of investor confidence.
"The CAQ believes that communications of audit quality indicators should be directed at independent audit committees, who play a vital role in providing oversight of the audit on behalf of investors. Since 2012, the public company auditing profession has undertaken its own initiative in this area, as documented in the 2014 white paper, The CAQ Approach to Audit Quality Indicators. Based on extensive input from investors, audit committees, preparers, audit professionals, and other stakeholders, we believe that audit quality indicators should be tailored to the particular facts and circumstances of a company's audit.
"The PCAOB’s efforts to develop audit quality indicators may help audit committees by providing them with context and insight to supplement inspection findings, thus offering a more complete picture of audit quality.
"The CAQ looks forward to fully reviewing the PCAOB’s concept release and providing feedback from the profession to the Board."