Demand for Better Auditors on the Rise in View of Financial Frauds

Wednesday, August 29, 2012 Print Email

Center for Audit Quality’s executive director, Cindy Fornelli, is of the opinion that the demand for auditors who can demonstrate independence, professional skepticism and objectivity better is on the rise in view of the current finance related scandals. Even the PCAOB (Public Company Accounting Oversight Board) has joined Center for Audit Quality to raise the same concerns. PCAOB has issued a number of reports in order to warn goading auditors to be doubtful of the statements they get from their customers. PCAOB issued a report which brought forth the annoying problems within the audits of broker and dealers.

Fornelli pointed out that the Center for Audit Quality is eyeing those problems to in order to determine the manner in which objectivity, skepticism and independence could be integrated into the audit procedure apart from finance related reporting procedure in a much better way.

Fornelli shared that skepticism was a great foundation related tool for both auditors and the others who are a part of the supply chain of finance related reporting. She further mentioned that the supply chain basically constitutes of internal and external audit related functions, management and auditing committees.

In order to provide more strength to those auditing principles, the Center for Audit Quality is getting together with numerous entities to oppose fraud related activities. These organizations basically include the National Association of Corporate Directors, the Institute of Internal Auditors and the Financial Executives International.

Fornelli stated that one of their primary goals is to collaborate and commune with those stakeholders who are interested in the problems that are plaguing audits of the public entity. With regard to matters pertaining to detection and deterrence of finance related reporting sham, the CAQ has collaborated with NACD, IIA and FEI.

The Center for Audit Quality is working on quite a few projects (that are in progress) along with these organizations. In the month of October 2012, the National Association of Corporate Directors is planning to host a number of webinars that will essentially promote skepticism to enhance the opportunities for detecting and deterring finance related shams and frauds.

In fact the Center for Audit Quality has produced some animated video films that highlight how investor can be protected in today’s market.

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