• Register
Return to: Home > News > Regulation > AICPA consults on audit quality enhancement

AICPA consults on audit quality enhancement

By Steffen Müller

The American Institute of Certified Public Accountants (AICPA) has issued a discussion paper that outlines plans and perspectives of the institute's enhancing audit quality (EAQ) initiative.

With the released paper, Enhancing Audit Quality - Plans and Perspectives for the US CPA Profession, AICPA consults all stakeholders in the audit process of private entities on efforts and changes the institute is planning in order to help "auditors excel in a fast changing and complex business environment."

According to the paper, AICPA aims to enhance audit quality on the educational, practical and regulatory level of the audit profession. Amongst others, the institute proposes to:

- Align the CPA exam with real-world practice and increase auditors adherence of AICPA's code of professional conduct,

- monitor the use of auditing and quality control standards and identify issues in order to specify improvements to the standards,

- enhance curricula, content and methods of instruction for major topical areas the profession serves and release a profession-widecompetency framework,

- monitor practice by performing extensive peer review procedures on high-risk and complex engagements and by requiring firms, in all cases where material non-conformity with applicable professional standards is noted, to engage a third party to perform issuance reviews with periodic reporting to a peer review Report Acceptance Body, and,

- consider sanctions, suspension or expulsion from AICPA membership, when a firm has failed to provide the AICPA Peer Review Program with a complete list of engagements that should be subject to review.

"Integrity and objectivity are core values for the CPA profession. Consistently performing high-quality audits is dependent upon adequate education and training, compliance with auditing and quality control standards, and experience working in specialized areas," said AICPA board of directors chairman Bill Balhoff.

"Through the EAQ, the AICPA will reinforce the quality of audit services for private entities and address any issues that may be identified."

The EAQ initiative has been launched in May 2014 and many AICPA committees, boards and staff contributed in order to "align the objectives of all audit-related AICPA efforts and collectively improve the quality of audit services delivered by the profession," according to AICPA president and chief executive officer Barry Melancon.

The issued EAQ discussion paper is open for comment until 7 November 2014. After this comment period, specific proposals and exposure drafts will be developed and released for public comment, AICPA said.

Related links


Discussion paper: Enhancing Audit Quality - Plans and Perspectives for the U.S. CPA Profession

Top Content

    2018 Digital Accountancy forum and awards: Digital transformation

    The Accountant presents highlights from The Digital Accountancy Forum & Awards 2018 panel discussions

    read more

    2018 Digital Accountancy Forum and Awards: Tech deep dive

    The second panel session of the day saw experts discuss how new technologies should not just be seen as a threat, and could be used to improve accounting.

    read more

    Digital Accountancy Forum and Awards: The power of data

    The third panel discussion of the day saw panellists discuss some of the worries their clients have had, how to overcome them, and how data and technology are providing real business opportunities.

    read more

    Digital Accountancy Forum and Awards: The next generation

    With young people more mobile, and technology changing the industry rapidly, the final panel session of the Digital Accountancy Forum looked at how firms would need to adapt to the new reality

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.