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Is audit quality essentially a people problem?

Tammy Whitehouse | August 25, 2017

Where there are problems with audit quality, it appears to be more of a problem with people than with institutional approaches to audit work.

That’s the view of at least one member of the Public Company Accounting Oversight Board, Jeanette Franzel, who says firms are making progress in addressing audit quality issues. In an article appearing in an accounting professional journal, Franzel says the board has noted a reduction in the number and severity of audit deficiencies that are serious enough to flag and describe in inspections reports.

“We’ve also seen improvements in tone at the top, coaching and support to audit teams, and training and monitoring of audit quality,” says Franzel. “These are real improvements to those quality control systems that can then—if they’re operating effectively—help keep the deficiency rates down and prevent deficiencies going forward.”

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