Indicators that may improve understanding of audit quality.

• Position: AUDIT - Brief article

The Public Company Accounting Oversight Board recently issued a concept release (pcaobus.org/Rules/Rulemaking/Docket041/Release_2015_005.pdf) seeking comment on the content and possible uses of audit quality indicators (AQIs), measures that may provide new insights into audit quality. Taken together with qualitative context, AQIs may inform and enhance discussions among those concerned with the financial reporting process, such as audit committees, audit firms, investors and regulators. Enhanced discussions could improve audits and stimulate competition among audit firms based on the quality of work.

The concept release seeks comment on 28 potential AQIs, covering three broad categories:

* Audit Professionals: measures dealing with the availability, competence and focus of those...