The Center for Audit Quality (CAQ) issued on October 10, 2012, a practice aid intended to encourage audit firms to proactively communicate with audit committees about inspections findings and quality control improvements.
The CAQ supports transparent, candid communication between auditors and audit committees consistent with the objectives of the Public Company Accounting Oversight Board's (PCAOB) August 1, 2012, Release No. 2012-003, Information for Audit Committees about the PCAOB Inspection Process, and believes that such communication supports the audit committee's role in overseeing the external auditor.
"Proactive engagement by auditors with audit committees regarding inspections and firm quality control improvement initiatives should provide audit committees valuable insights into the firm's quality control program", CAQ Executive Director Cindy Fornelli said.
The CAQ Practice Aid on discussions with audit committees about inspection findings and quality control measures is available on the CAQ website.
Upcoming CAQ Webcast - Communications with Audit Committees: Requirements and Leading Practices
Effective two-way communication between the auditor and the audit committee provides for the execution of high-quality audits and informs the audit committee's oversight of the financial reporting process. Designed with both auditors and audit committee members in mind, the webcast will provide unique insights, observations, and perspectives of representatives from the PCAOB, the audit committee community, and the audit profession related to the PCAOB's recently issued:
Auditing Standard No. 16 (AS 16), Communications with Audit Committees
Release No. 2012-003, Information for Audit Committees about the PCAOB Inspection Process
Panelists will discuss requirements under AS 16, including new required communications, as well as enhancements to existing requirements under PCAOB's interim standard, AU 380, Communication with Audit Committees.
In addition, panelists will share views on leading practices that can be employed by both auditors and audit committees to promote robust and candid communications related to required communications under AS 16 as well as PCAOB inspection results, both of which support the audit committee's role in overseeing the financial reporting process and external audit.
Webcast Details and Registration
October 24, 2012; 2:30-4:00 p.m. ET
Free of charge unless CPE is desired
Eligible for 1.5 CPE credits: $75 for AICPA members; $93.75 for nonmembers