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Financial Reporting and Regulatory Update

First Quarter 2019

From the CAQ

Audit quality reporting framework for audit firms

On Jan. 8, 2019, the CAQ released a framework, “Audit Quality Disclosure Framework,” to assist audit firms in developing their transparency or audit quality reports.

The framework is voluntary, is flexible, and addresses disclosure of quality control at the firm level. Under these principles, the framework provides “points of focus” for six elements of audit quality and examples of firm-level audit quality indicators (AQIs):

  1. Leadership, culture, and firm governance
  2. Ethics and independence
  3. Acceptance and continuance of clients and engagements
  4. Engagement team management
  5. Audit engagement performance
  6. Monitoring