Monday, September 15, 2014

Center for Audit Quality Actively Embraces SEC Disclosure Initiative

The Center for Audit Quality embraces the SEC’s new and important disclosure initiative as one of the key components in the audit quality ecosystem, along with effective audit committees. In recent remarks at a public accountants seminar in Singapore, CAQ Executive Director Cindy Fornelli noted that disclosure effectiveness has been a subject of great interest for SEC Chair Mary Jo White.

The CAQ shares Chair White's view that disclosure can be improved, she observed, adding that effective disclosure is a hallmark of world-class capital markets. It is very important that financial disclosure is meaningful and as tailored as possible, and optimized in terms of how and where it is delivered. To this end, she noted that the CAQ has launched a new initiative with the Institute for Corporate Responsibility at the George Washington University School of Business, called the Initiative on Rethinking Financial Disclosure.

This initiative will harness the power of team competition. Several teams of graduate students at the School of Business are analyzing annual reports from prominent companies. This fall, they will present the SEC with their findings on how to improve these communications. A winning team will be selected by a panel of experts.