April 3, 2023
CAQ Releases Annual Analysis of Audit Quality Reports
The Center for Audit Quality (CAQ) recently released its report: Audit Quality Reports Analysis: A Year in Review. In the report, the CAQ review audit quality reports voluntarily published by accounting firms. According to the CAQ, in the last three years, eight of the 14 annually inspected accounting firms issued audit quality reports. The CAQ report notes:
Audit quality reports provide stakeholders with various qualitative and quantitative firm-level audit quality metrics and other information. The metrics and other information in audit quality reports are not necessarily determinative of audit quality; however, when considered in context and in combination, they provide valuable information to stakeholders at the firm level about how an accounting firm defines, approaches, and executes its audit quality mission.
The CAQ report provides an overview of the qualitative and quantitative disclosures observed in the audit quality reports and explains how that information may be useful to stakeholders.
– Dave Lynn