A significant majority of audit committee members are satisfied with the quality of their communications with their independent auditor, according to a survey by the AICPA Center for Audit Quality (CAQ) and Corporate Board Member (CBM), an NYSE Euronext company. The two organizations surveyed members of public company audit committees regarding chief challenges affecting audit committees, including the independent auditor’s communications on financial reporting issues and those that help the audit committee fulfill its fiduciary responsibilities. The survey was conducted in October-November 2012 and was completed by 228 audit committee members, more than two-thirds of whom serve on companies with more than $750 million in revenue. Auditor communications on several key topics are judged to be excellent, including:

  • Auditor communications regarding the audit plan (62.1 percent);
  • The evaluation of the company’s internal control over financial reporting (59.3 percent); and
  • The evaluation of the audit results, including any material unusual transactions or misstatements (63.6 percent).

The majority of audit committee members also give very high ratings to the information provided by external auditors, which in turn allows the audit committee to fulfill its fiduciary responsibilities to shareholders. Click here to access the survey summary in full. If you have questions about this survey or any other matters, contact your Warren Averett Pender Newkirk partner, or any member of our SEC Practice Division at (813) 229-2321.