Audit Committees

Listen to Your Auditor or Pay the Price Later

By Daniel L Goelzer

Audits often uncover financial reporting mistakes. When a misstatement is detected, the auditor proposes to company management an adjustment to correct the error. However, in the case of adjustments that…

Do Audit Committees Avoid Accounting Firms That Uncover Material Weaknesses?

Two researchers at the University of Arkansas have published a paper finding that audit firms that report material weaknesses in a client’s internal control over financial reporting (ICFR) pay an…

PCAOB Staff Guidance on Auditor Communications with Audit Committees About Independence Rule Breaches

By Dan Goelzer and Tom Riesenberg

It has often been said — and we fully agree — that auditor independence is essential to the…