Audit quality indicators up for debate

Written on Mar 10, 2016

CPA Voice JanFeb ThumbnailAudit 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.

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January/February 2016 Self-Assessment Exam


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