The Center for Audit Quality issued a practice aid Wednesday to encourage audit firms to proactively communicate with audit committees about inspection findings and quality control improvements.
The CAQ wants auditors and audit committees to carry on transparent, candid communications consistent with the objectives of the Public Company Accounting Oversight Board’s Aug. 1, 2012, Release No. 2012-003, Information for Audit Committees about the PCAOB Inspection Process. The CAQ believes that such communications support 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 in a statement.
The CAQ will be hosting a webcast on Communications with Audit Committees: Requirements and Leading Practices on Oct. 24, 2012 from 2:30-4:00 PM ET to discuss the practice aid and share best practices. In addition to being of interest to public accounting firms, the free webcast will assist audit committees in structuring discussions about PCAOB inspections with their auditors.
The webcast includes panelists from the PCAOB, the audit committee community, and the audit profession, and will provide an overview of required communications under new PCAOB Auditing Standard 16, Communications with Audit Committees.
Panelists will also share their insights and perspectives on the best practices that can be employed by auditors and audit committees to promote robust and candid dialogue on significant audit and financial statement matters and PCAOB inspections results.
The CAQ practice aid on discussions with audit committees about inspection findings and quality control measures is available on the CAQ’s Web site at http://www.thecaq.org/resources/pdfs/AuditCommitteeCommunications.pdf.
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