Auditing and Assurance

Audited financial statements and related disclosures are a critical source of information for investors’ investment and voting decision making.

The integrity and efficiency of capital markets depends on the quality and comparability of the information provided by audited financial statements and related disclosures, which depend directly on the quality of auditing and assurance engagements and the standards and regulations that govern them. High-quality, independent auditing and assurance improves investors’ confidence that the financial statements and related disclosures are free of material misstatement from errors or fraud.

CFA Institute has a rich history of advocating for investor interests in achieving high-quality, independent audits. Our advocacy is global in its reach and has included:

• Proposing reforms to enhance the auditor’s report—including making disclosures of critical audit matters and increasing transparency regarding audit participants (e.g., disclosure of engagement partner names, auditor tenures, and use of affiliated firms);
• Increasing investors’ trust in audits through improvements to audit quality, such as strengthening quality control standards and the measurement and disclosure of audit quality indicators;
• Advocating for auditing and assurance standards and regulations, crafted with a focus on protecting investors, that foster trust in capital markets; and 
• Influencing policymakers through representation in advisory groups and participation in roundtables, agenda consultations, and investor outreach.