The Journal of Accountancy published a News Digest report in their January 2013 issue on the Center for Audit Quality (CAQ) release of two products with the interactions between external auditing firms and audit committees in mind, plus a Guide to PCAOB Inspections aimed at investors and capital market stakeholders.
CAQ PRACTICE AID: Discussions with Audit Committees About Inspection Findings and Quality Control Matters – A practice aid developed by the CAQ describes methods for enhancing the flow of information between audit firms and audit committees on audit inspections and quality-control matters. The CAQ, which is affiliated with the AICPA, also has released a tool to assist audit committees in annual evaluations of external auditors. The practice aid is available at tinyurl.com/95szmxr.
Audit Committee Essentials: The Annual Auditor Assessment – The new evaluation tool states that public focus on how audit committees perform, including how they oversee external auditors, has increased significantly. The tool says audit committees should evaluate auditors annually to make an informed recommendation to the company board on whether to retain his or her services. This tool is available at tinyurl.com/8udarj2.
Guide to PCAOB Inspections – Available at tinyurl.com/cyuzog8, this guide explains the objectives and process of inspections, the difference between a PCAOB inspection and an enforcement hearing, and the contents of inspection reports.
If you have questions about these products or any other matters, contact your Warren Averett Pender Newkirk partner, or any member of our SEC Practice Division at (813) 229-2321.
Click here to read the Journal of Accountancy article in full.