FEE’s new overview sets out what audit quality indicators (AQIs) have been developed by nine different organisations worldwide, including regulators, oversight bodies, professional bodies, and audit firms. FEE also provides insight into key differences between these AQIs. Namely, if they are rules or principles-based, qualitative or quantitative, and whether reporting on these AQIs is made public or kept private.
With this new publication, FEE adds a European perspective to the global discussion on audit quality. AQIs can increase comparability and transparency between audits and audit firms.
As audits are dealt with on a global level, FEE thinks that an international initiative on AQIs is the best way forward. The different international stakeholders need to collaborate in order to agree on a globally accepted set of audit quality indicators.
July 2016 update
The recent updates include the Nederlandse Beroepsorganisatie van Accountants (NBA) publishing a practice note Disclosure of Audit Quality Factors as a follow up to its first proposed set of AQIs.
Additionally, the United States issuing bodies have finished collecting feedback on their AQIs initiatives. The United States Center for Audit Quality (US CAQ) issued a report on insights gained from discussions during a global series of roundtables with audit committee members and other stakeholders on a potential set of AQIs. For the moment, the US CAQ will continue monitoring the developments in the area. The Public Company Accounting Oversight Board (PCAOB) has yet to take a formal decision on the way forward regarding its concept release on AQIs.
Overview of Audit Quality Indicators Initiatives (updated July 2016)
Related FEE work:
FEE responds to PCAOB concept release on Audit Quality Indicators (AQIs)