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In the context of increasing reliance by auditors on other accounting firms and individual accountants whose quality control and independence standards may be inadequate, SEC Chief Accountant Paul Munter provided good practice guidance to lead auditors and audit committees to effect their “other auditor” supervision and oversight responsibilities, respectively. The statement is a worthwhile read for audit committees of public companies whose audits involve the use of other auditors, which, according to Chief Accountant Munter, is a significant 26% of all issuer audit engagements and 57% of large accelerated filer audits.

See “SEC’s Chief Accountant issues best practices reminder for audit firms’ use of other auditors” (Jim Hamilton’s World of Securities Regulation) and additional resources on our Audit Committees and Audit & Audit Firms pages.
                  
                     This post first appeared in the weekly Society Alert!