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The Center for Audit Quality submitted a wide-ranging comment letter to the U.S. Treasury Department’s Advisory Committee on the Auditing Profession touching on subjects including changes resulting from the Sarbanes-Oxley Act, basic audit quality functions, ethics and compliance.
The letter is co-signed by CAQ Governing Board Chairman James S. Turley, chairman and CEO of Ernst & Young LLP, and CAQ Executive Director Cynthia M. Fornelli.
“In working to make public company audits more reliable and relevant to investors, the CAQ views the deliberations of the Advisory Committee as an extraordinary opportunity to identify rational and realistic approaches that will result in a more sustainable auditing profession for decades to come,” the letter states. It is available at http://thecaq.org/members/pdfs/Treasurycommentletterfinal11302007.pdf.
The PCAOB approved a $144.6 million budget for calendar year 2008. The majority of the board’s expenses would be associated with hiring and retaining experienced auditors to conduct inspections of registered public accounting firms. More than 1,800 public accounting firms have registered with the board, including approximately 830 firms based outside the U.S. Firms with more than 100 public company audit clients must be inspected annually; firms having up to 100 public company audit clients must be inspected at least once every three years.
The 2008 budget projects that the board will assess $134.5 million in accounting support fees paid by issuers.
The proposed 2008 outlay is an increase of approximately 6% from the PCAOB’s 2007 budget of $136.4 million. The board’s budget is subject to SEC approval.