PwC comments on PCAOB's Audit Quality Indicators concept release

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Comment letter , PwC US Sep 29, 2015

PwC supports a market-based approach to the communication of audit quality indicators.


PwC submitted a comment letter on the PCAOB’s Concept Release on Audit Quality Indicators (the “Concept Release”).

We are supportive of communicating engagement-level audit quality indicators (“AQIs”) to audit committees given their responsibilities, including oversight of the auditors, and their knowledge and interaction with the company and ability to participate in the two-way dialogue needed to evaluate the AQIs. A market-based approach whereby audit committees would select which engagement-level AQIs are communicated to them will allow them to tailor the set of AQIs to those which aid in their auditor oversight role. We also support the public communication of firm-level AQIs and believe that market participants, over time, will influence audit firms as to which measures are relevant to them.

Our letter also discusses there may be limited relationships to audit quality but the AQIs may still contribute to transparency that allows for a more informed discussion related to audit quality. Our letter also includes specific concerns about certain potential AQIs included in the Concept Release that we do not believe should be further considered as part of a suite of potential AQIs as the unintended consequences or possibility for misinterpretation are such that we do not believe they can be overcome. 

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Heather Horn

Heather Horn

US Strategic Thought Leader, National Professional Services Group, PwC US

David Schmid

David Schmid

International Accounting Leader, National Professional Services Group, PwC US

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