Public Company Auditing A View from the CAQ

Public Company Auditing: A View from the CAQ Anita Doutt, CPA Professional Practice Fellow Center for Audit Quality Accounting CPE Conference 2019 Duquesne University November 21, 2019

Agenda • Overview of the Center for Audit Quality Ø Mission Ø Views Ø Initiatives • Key auditing issues and CAQ resources • Q&A CENTER FOR AUDIT QUALITY 2

CAQ Mission The CAQ is dedicated to enhancing investor confidence and public trust in the global capital markets. CENTER FOR AUDIT QUALITY 3

CAQ Views: Strong Investor Confidence 74% 76% 78% confidence in US capital markets confidence in US public companies confidence in audited financials Source: The CAQ’s 2019 Main Street Investor Survey CENTER FOR AUDIT QUALITY 4

CAQ Views: Strong Investor Confidence 83% of US Main Street investors express confidence that independent auditors are effective in their investor-protection role Source: The CAQ’s 2019 Main Street Investor Survey CENTER FOR AUDIT QUALITY 5

CAQ Initiatives: The Auditor’s Evolving Role • Educating on… Ø What auditors do today Ø How auditors can build confidence tomorrow • Non-GAAP Roadmap • Role of Auditors whitepaper Ø Coming December 2019 CENTER FOR AUDIT QUALITY 6

CAQ Initiatives: Collaborating Against Fraud • Anti-Fraud Collaboration • Case studies • Publications • Webcasts CENTER FOR AUDIT QUALITY 7

CAQ Initiatives: Dialogue with Academia • Support for independent research • Annual CAQ Symposium Breakout discussion at the Annual CAQ Symposium, August 2019 CENTER FOR AUDIT QUALITY 8

CAQ Initiatives: Attracting Future Auditors • Discover Audit resources • Roadtrip Nation and Share Your Road • #Auditor. Proud CENTER FOR AUDIT QUALITY 9

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Key Issues: The Auditor’s Report • Critical audit matters (CAMs) • PCAOB guidance on CAMs implementation CENTER FOR AUDIT QUALITY 11

Key Issues: The Auditor’s Report • CAQ resources • Key CAMs questions from point of view of audit committees, investors, and others CENTER FOR AUDIT QUALITY 12

Key Issues: Estimates and Specialists • Estimates considerations • Specialist considerations • PCAOB resources CENTER FOR AUDIT QUALITY 13

Key Issues: Quality Management • Regulatory developments • CAQ views and resources CENTER FOR AUDIT QUALITY 14

Key Issues: Auditor Independence • Regulatory developments • CAQ views and activity CENTER FOR AUDIT QUALITY 15

Key Issue: Emerging Technologies • CAQ resources for audit committees and others CENTER FOR AUDIT QUALITY 16

Key Issues: Cybersecurity • Regulatory developments Ø SEC Statement and Guidance on Public Company Cybersecurity Disclosures (2018) Ø SEC Investigative Report (2018) Ø Enforcement activity CENTER FOR AUDIT QUALITY 17

Key Issues: Cybersecurity • The CPA profession’s key role • AICPA cybersecurity risk management framework: SOC for Cybersecurity • CAQ resources CENTER FOR AUDIT QUALITY 18

Thank You CENTER FOR AUDIT QUALITY 19

THECAQ. ORG CENTER FOR AUDIT QUALITY