Center For Audit Quality - Investor Education

Investor Education

In an effort to narrow the expectation and information gaps regarding public company auditing, the CAQ developed a series of film-noir style videos to introduce the people, laws and requirements that help ensure that the financial reporting process protects investors’ interests. The CAQ created a dedicated website for the videos, CAQForInvestors.org, which contains additional CAQ materials of interest to investors.

The first video, “The System of Investor Protection,” explains the roles of the external auditor, the audit committee chair, the chief financial officer, the internal auditor, and regulatory agencies. The 3-and-a-half minute video introduces those with key responsibilities in the financial reporting system: Ledger Lines, an external auditor with a granite chin, who explains the roles and responsibilities of Lotta Charts, a CFO and a whiz with the books; Indy Pendent, the chair of the independent audit committee and a man of integrity; Ida Figures, an internal auditor who’s tough on the numbers; and Johnny Law, the cop on the beat who makes sure that everyone is playing by the rules.

The second video, “The Financial Statement Audit,” features external auditor Ledger Lines explaining the audit process, including the risk assessment, selection of the audit team, collection and documentation of evidence, and issuance of a written audit opinion as to whether the financial statements, as a whole, are free of serious or material misstatement.

The CAQ’s third investor education video spotlights the role of the audit committee and features Indy Pendent, the chair of the audit committee.

Read more about this topic:  Center For Audit Quality

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