SEC Chief Accountant releases statement on Audit Quality
Feb 05, 2024
On February 05, 2024, the Securities and Exchange Commission’s (SEC) Chief Accountant Paul Munter released a statement on how auditors and audit committees must focus on audit quality to protect investors.
Mr. Munter expressed concerns over the Public Company Accounting Oversight Board's (PCAOB) recent inspection findings. He highlighted a troubling increase in deficiencies, particularly regarding insufficient audit evidence, rising from 29% in 2020 to 40% in 2021 inspections. This trend, Mr. Munter emphasized, necessitates renewed commitment from the entire auditing profession to ensure investor protection.
He reminded auditors of their fundamental responsibility to investors, requiring objective judgment, rigorous skepticism, and prioritizing investor interests throughout the audit process. While acknowledging the dedication of most auditors, Mr. Munter stressed the need for renewed focus on delivering high-quality audits in line with the profession's mission.
Access the statement on the SEC’s website