A Friendly Reminder for Auditors: Be Skeptical

If you're an opiner who has been suffering from massive memory loss or ignoring your professional purpose, don't fret. Master audit firm lobbyist Cynthia Fornelli has your playabook:

“Independence, objectivity and skepticism, I think, are fundamental foundational elements of audit quality,” Fornelli said in an interview at the Accounting Today offices on Friday.

Now that you've been sufficiently refreshed, you know who's got your back? The PCAOB and CAQ, that's who! They've been on this since…well…last year:

“Last year the PCAOB actually started looking at independence, objectivity and skepticism, and came out with a concept release and held a series of roundtables. And they’re still looking at that issue. It is foundational to good audit quality.” She noted that the CAQ is looking at those issues as well to see how independence, objectivity and skepticism can be integrated better into the auditing process, in addition to the financial reporting process. 

You can sleep well knowing that your chief advocate and primary regulator are all over this stuff.

CAQ’s Cindy Fornelli Sees Need for Skeptical Auditors [AT]

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Comments are closed.

Related articles

a man with binoculars

Big 4 Conflicts of Interest Are in Regulators’ Crosshairs, EY Tops the Independence Naughty List

There’s a story in the New York Times today about how EY “devised an elaborate arrangement” for nonprescription drugmaker Perrigo to avoid more than $100 million in taxes, an arrangement that was questioned by Perrigo’s then-auditor BDO. Perrigo did what any reasonable tax-avoiding nonprescription drugmaker would do and dropped BDO for EY, hence totally resolving […]