Audit quality indicators have been a popular discussion topic for years, and on June 30 the Public Company Accounting Oversight Board issued a Concept Release seeking public comment on a group of AQIs. “The proposed AQIs are quantitative measures thought to be important to high quality audits that could support audit committees and others, such as firms, investors and regulators, in carrying out their responsibilities,” writes Laura Hay, CPA, CAE in the latest issue of CPA Voice.
PCAOB’s proposed audit quality indicators include 28 areas, with more than 70 illustrative calculations. Per their recommendation, AQIs should meet three principles:
- Quantifiable to provide for consistency and comparability
- Generate data that enables users to pose critical questions
- Should be used as part of a ‘balanced portfolio’ as no single indicator is likely to be a sole determinant of audit quality
To find out the reactions after the comment deadline was extended, and the outlook on AQIs, read the rest of the story online now.
Don’t miss this convenient, self-study CPE
Did you know that reading CPA Voice can help you satisfy your CPE requirement? No matter your location or the time of day – and even without the benefit of electricity – you can gain CPE credit with each issue.
Every edition includes a 12-question self-assessment exam covering content from that issue. Receive a grade of 70% or higher and you’ll earn one hour of CPE credit in specialized knowledge.
Best of all, you can take the exam when and where it’s convenient for you, either online or by mail. Exams remain available online – and may be completed for CPE – through the same month of the following year.
January/February 2016 Self-Assessment Exam