Audit Quality Indicators

SAG Discussion
Disclaimer

The views expressed by each of the presenters

are their own personal views and not necessarily
those of the PCAOB, members of the Board, or the
PCAOB staff.

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 Introduction: SAG Discussion of
Audit Quality Indicators
Comment period ended 9/29.
Background Received 47 comments letters.

Three breakout sessions addressing different aspects of

the concept release.
Format Each breakout group assigned specific topics and
questions for discussion.

Identify areas of general agreement.

Goals Discuss areas of controversy and rationale of differing

views.
New ideas

Summary and Summary of SAG member views.

SAG members requested to offer recommendation about
Next Steps how to move forward.

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 Pervasive Views in Comment Letters

Agreement ControversialAreas
AQIs:Somearecontroversial;
AQIscouldbeuseful scalable;testing;professional
skepticism

NatureofAQIs:quantitative;
portfolio;requirecontext;inform Investorsakeycustomer?Context?
discussion;notscorecards

Auditcommitteesareakeyuser; Unintendedconsequences?
engagementlevelAQIsarekey

Mandated?Roleofregulation?

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 Summary of Breakout Sessions

Seekadviceoncontentandpossibleusesofagroupof28
TheGoal potentialAuditQualityIndicators(AQIs).

Group1 AQIsandtheircontent

Group2 UseofAQIsbyauditcommittees

Group3 UseofAQIsbyinvestors

SAGMemberswillberequestedtomakeabrief
NEXTSTEPS
recommendationofnextsteps

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 Group Discussion Facilitators &
AQI Team Members

Group1 Group2 Group3

Eugene Greg Marty
Theron Jonas Baumann

George Steve Jane

Wilfert Kroll Hutchens

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Questions?