More Debits & Credits Posts

CAQ Sees Evolving Role for Public Company Auditors

May 8, 2012

The Center for Audit Quality recently gathered a group of 30 people at a workshop in Washington, D.C., to discuss how they see the role of the public company auditor changing.

The CAQ has just released a report summarizing the findings of the workshop, which took place on March 12. None of the participants are quoted by name as the workshop took place under so-called “Chatham House rules,” in which the identities and affiliations of speakers are not revealed. Still, there are some enlightening findings for the audit profession in the report, among them:

• Non-GAAP disclosures are important to investors’ decision making processes, although audited financial statements provide a baseline;

• More consistency and comparability is warranted in the use of KPIs in MD&A and earnings releases;

• Investors want to hear directly from management; auditor involvement with information outside the financial statements could add an unwanted “filter”; and

• Some investors would like to see a requirement that the auditor read and discuss the earnings release with the audit committee.

To download a copy of the report, click here.

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.