More than three-quarters (78%) of audit
committee members who participated in a recent
survey commissioned by the Center for Audit Quality
rated overall audit quality “very good” or
“excellent,” and 82% said it has improved in recent
years.
About 53% of the audit committee members
agreed that overall audit quality is “very good,”
while 25% described it as “excellent.” About 87%
said the risk of inaccuracies in financial
statements due to fraud is “not very high,” and 60%
agreed that the risk declined after the passage of
the Sarbanes-Oxley Act. Nearly
two-thirds (65%) agreed that investors should have
more confidence in the markets as a result of the
2002 law.
The Internet survey of 253
audit committee members was conducted between Jan.
7 and Feb. 20 by The Glover Park Group.
Participants in the survey represented a range of
publicly traded companies. All served on at least
one audit committee in 2007. Six in 10 served on
two or more audit committees, and half were
committee chairs. About 56% began their service as
audit committee members prior to the passage of
SOX. Nearly all of the respondents (99%)
said they devote more time to their committee work
as a result of SOX. About 90% said they work more
closely with external auditors. The audit
committee members expressed mixed views on the
efficacy of audited financial statements filed
with the SEC. Although most described financial
statements as “easily accessible” (81%) and
“relevant to investors” (87%), 78% said they are
too complicated. The survey questionnaire
and results are posted on the CAQ’s Web site, www.thecaq.org.
The PCAOB announced the 2008 series
of its Forums on Auditing in the Small Business
Environment. The agenda will include a discussion
of practical quality control policies and
procedures and evolving accounting and auditing
issues. The discussions also will address the
application of certain auditing standards,
observations from the board’s disciplinary orders,
and discussion of implementation of Auditing
Standard no. 5, An Audit of Internal Control
Over Financial Reporting That Is Integrated with
An Audit of Financial Statements.
In Chicago and Philadelphia, directors and
financial executive officers of small and medium
public companies will be invited to participate in
a separate event the following day that will
address PCAOB issues affecting smaller public
companies. Each free program is open to
PCAOB–registered firms and the smaller public
companies audited by those firms. Attendees earn
CPE credits. The 2008 series began April 28 in
Santa Monica, Calif., and continues as follows:
San Francisco–June 3
Dallas–June 24
Chicago–Sept. 30 to Oct. 1
Philadelphia–Oct. 29 to 30
Fort Lauderdale, Fla.–Nov. 17
New York–Jan. 13, 2009 More
information, including the forum agenda and
registration information, is available at www.pcaobus.org
.
The AICPA’s Audit and Attest
Standards Team issued five technical practice aids
(TPAs 8200.05–.09) containing technical questions
and answers developed in response to common
questions received from members regarding the
implementation of Statement on Auditing Standards
(SAS) nos. 104–111, also referred to as “The Risk
Assessment Standards.” Additionally, TPA
9120.08 has been developed to address the
implications on the principal auditor’s report
when part of an audit is conducted by other
independent auditors in accordance with
International Standards on Auditing or another
country’s auditing standards. The TPAs are
available at www.aicpa.org/Professional
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and%20Attest%20Standards/Practice%20Aids%20and%20
Tools/Recently%20Issued%20Technical%20Practice%20
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