The AICPA-affiliated Center for Audit Quality issued a comment letter in March regarding the PCAOB’s Proposed Auditing Standards Related to the Auditor’s Assessment of and Response to Risk. In the letter, the CAQ said it appreciates the board’s consideration of the feedback from stakeholders on its original proposal and believes that the reproposed standards are significantly improved in a number of areas.
“Identifying, assessing and responding to risks are integral to the audit process and fundamental to the conduct of highquality audits. We concur with the board that risk assessment should underlie the entire audit process and result in appropriate audit procedures that are tailored to a company’s facts and circumstances, including its size and complexity,” CAQ Executive Director Cindy Fornelli wrote. “We are supportive of efforts to improve auditors’ assessment of and response to risks.”
However, the comment letter noted a number of areas where the CAQ believes the proposal could be enhanced and suggested improvements to the transparency of the PCAOB’s standard-setting process.
The comment letter is available on the CAQ’s Web site at tinyurl.com/yzhrjp8.