The Center for Audit Quality (CAQ) issued the following statement from Executive Director Cindy Fornelli regarding the release of the Public Company Accounting Oversight Board's (PCAOB) report on inspection findings related to audits of internal control over financial reporting:
"The PCAOB has issued a report summarizing common inspection findings in the area of internal control over financial reporting, an important aspect of financial reporting for investors. The profession recognizes the need to improve performance in this important area and has devoted significant additional resources to this effort over the last year. We encourage all auditors to read the report and consider the items noted in planning and performing public company audits. We also encourage preparers and audit committee members to familiarize themselves with the report as it may contain observations that might be useful in improving upon the design or operating effectiveness of internal controls over financial reporting."
Read the PCAOB report - "Observations from 2010 Inspections of Domestic Annually Inspected Firms Regarding Deficiencies in Audits of Internal Control over Financial Reporting."
SOURCE: December 10, 2012, Center for Audit Quality Press Release