Chairman’s message in response to the publication of the Audit Firm Governance Code
The CPAAOB (Certified Public Accountants and Auditing Oversight Board) welcomes today’s publication of “Principles for Effective Management of Audit Firms (The Audit Firm Governance Code).”
The CPAAOB recognizes the importance of firmly establishing effective governance in audit firms to maintain and improve audit quality. The CPAAOB has been carrying out its monitoring with a focus on firms’ governance and management.
Audit firms, mainly the largest ones, are believed to be engaged in their own work for better management, in light of what the Code expects. The CPAAOB is intended to test how effectively they have developed and improved their management, in the course of its monitoring.
The information to be obtained through the monitoring process can be widely shared to market participants by way of monitoring reports and other communication measures. The CPAAOB intends to continue our work to increase investors’ confidence in the capital markets.
March 31, 2017
Dr. Toshiro Hiromoto
Chairman of the CPAAOB