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Public Company Audits Quality Controls Are Indispensable for Accounting Firms

 

The accounting and auditing professions shoulder significant responsibilities as investor trust is placed on them, especially in the context of Public Company Audits. Hence, accounting and auditing are subject to standards that must be adhered to, ensuring transparency, uniformity, and accuracy in financial reporting and audit reports.

Both professions are also regulated by stringent regulators that impose heavy penalties for violations of auditing standards and quality procedures. One such regulator is the PCAOB, which specifically oversees the audits of U.S Public Companies.

Violations by U.S audit firms, particularly in terms of lack of quality controls, have imposed a need for proactive measures for quality procedures and setting up an independent committee that oversees the audit practice.

Quality audit procedures, especially in the realm of Public Company Audits, are an assurance to the stakeholders and must be adopted, innovated, and strengthened.