September 27, 2022

Center for Audit Quality Continues to Be Made Up of Firms Doing Bad Audits

Per Web CPA, the Center of Audit Quality has re-elected the four members of its governing board:

Ernst & Young chairman and CEO James Turley has been unanimously re-elected to serve a second term as chair of the governing board. Michele Hooper, co-founder of The Directors’ Council, and AICPA president and CEO Barry Melancon will extend their service as co-vice chairs. Harvard business administration professor Lynn Paine has been re-elected as a public board member.

BFD, right? Perhaps but it’s worth noting that the rest of the board is also primarily made up of representatives from large firms:

Crowe Horwath CEO Charles M. Allen, former SEC Commissioner Harvey J. Goldschmid, PricewaterhouseCoopers Chairman Robert E. Moritz (who replaced Dennis M. Nally on the CAQ board), Grant Thornton CEO Edward E. Nusbaum, Deloitte CEO Barry Salzberg, McGladrey & Pullen managing partner David R. Scudder, KPMG CEO John B. Veihmeyer (who replaced Timothy P. Flynn on the CAQ board) and BDO Seidman CEO Jack Weisbaum

In case you’re not counting, all Big 4 firms are represented along with BDO and Grant Thornton. That’s all well and dandy and I’m sure these guys could at least audit their way out of a paper bag but has it occurred to anyone that all these “representatives of the industry” work for firms that continue to have problems with AUDIT FAILURE?
The list is long of pending litigation but the firms don’t really seem to mind because they’ll claim TBTF. They have the AICPA set out this nice little group, focused on “audit quality” in order to put out press releases about the “work” they’re doing, meanwhile, audits still keep blowing up. Yeah, I guess re-electing the same people will be fine.
CAQ Governing Board Re-elected [Web CPA]

Per Web CPA, the Center of Audit Quality has re-elected the four members of its governing board:

Ernst & Young chairman and CEO James Turley has been unanimously re-elected to serve a second term as chair of the governing board. Michele Hooper, co-founder of The Directors’ Council, and AICPA president and CEO Barry Melancon will extend their service as co-vice chairs. Harvard business administration professor Lynn Paine has been re-elected as a public board member.

BFD, right? Perhaps but it’s worth noting that the rest of the board is also primarily made up of representatives from large firms:

Crowe Horwath CEO Charles M. Allen, former SEC Commissioner Harvey J. Goldschmid, PricewaterhouseCoopers Chairman Robert E. Moritz (who replaced Dennis M. Nally on the CAQ board), Grant Thornton CEO Edward E. Nusbaum, Deloitte CEO Barry Salzberg, McGladrey & Pullen managing partner David R. Scudder, KPMG CEO John B. Veihmeyer (who replaced Timothy P. Flynn on the CAQ board) and BDO Seidman CEO Jack Weisbaum

In case you’re not counting, all Big 4 firms are represented along with BDO and Grant Thornton. That’s all well and dandy and I’m sure these guys could at least audit their way out of a paper bag but has it occurred to anyone that all these “representatives of the industry” work for firms that continue to have problems with AUDIT FAILURE?
The list is long of pending litigation but the firms don’t really seem to mind because they’ll claim TBTF. They have the AICPA set out this nice little group, focused on “audit quality” in order to put out press releases about the “work” they’re doing, meanwhile, audits still keep blowing up. Yeah, I guess re-electing the same people will be fine.
CAQ Governing Board Re-elected [Web CPA]

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