RSM US has established an Audit Quality Board comprised of three independent board members, the top five U.S. accounting firm said on Jan. 21.
The firm’s Audit Quality Board is an advisory body responsible for evaluating the effectiveness of quality control and system of quality management matters within RSM US’s assurance practice. Board members will also offer advice and recommendations on audit quality-related aspects of the firm’s operations, culture, governance, and risk management, RSM US said in a media release.
Based on the results of the firm’s last four inspection reports from the Public Company Accounting Oversight Board, the quality of RSM US’s audits of public company issuers has been inconsistent. In two of the last four exams, PCAOB inspectors found deficiencies in nearly half of RSM’s audits of issuers that were reviewed while the other two had error rates under 25%.
- 2023: 47% deficiency rate (17 audits reviewed)
- 2022: 24% deficiency rate (17 audits reviewed)
- 2021: 24% deficiency rate (17 audits reviewed)
- 2020: 47% deficiency rate (15 audits reviewed)
“Audit quality is essential to ensuring confidence in the capital markets and is at the core of our role as gatekeepers for the public trust,” Joel Shamon, RSM’s enterprise assurance leader, said in a statement. “Our Audit Quality Board members bring extensive experience in leading audit quality initiatives in the U.S. and globally. As we continue to enhance our services and improve the audit experience for management teams, boards, and our people, we look forward to benefiting from their counsel and objective insights.”
Jamie Klenieski, RSM’s audit quality and risk management leader, added, “The creation of our Audit Quality Board reinforces our commitment to the principles of integrity, independence, objectivity, and excellence that are hallmarks of our profession. As we strive for continuous improvement in the effectiveness of our work, the board’s guidance and diverse viewpoints will help us ensure we’re consistently delivering high-quality audits.”
Members of the RSM US Audit Quality Board include:
Tracey Golden
Golden is a past chairman of the boards of the AICPA and the Association of International Certified Professional Accountants. She has more than 40 years of industry experience and is a former Deloitte partner where her roles included global risk executive, national regulatory and inspections leader, national quality assurance partner, and engagement quality control reviewer.
Golden previously served as a professional accounting fellow at the Securities and Exchange Commission.
Dave Sullivan
Sullivan is currently a member of the Public Interest Oversight Board, the global independent body that seeks to improve the quality and public interest focus of the international audit, assurance, and ethics standards formulated by the international standard-setting boards. He is a former Deloitte partner where his roles included global audit and assurance quality leader and national managing partner—quality and professional practice. Sullivan, who has 40 years of industry experience, also serves as an advisor to large CPA and consulting firms on matters of audit quality.
He was previously a practice fellow with the Financial Accounting Standards Board.
Dan Sunderland
Sunderland is currently professor of practice in the accounting group at Northeastern University and a frequent advisor on PCAOB QC 1000 implementation and other accounting, audit, and governance matters. He is a former Deloitte partner where his roles included chief auditor, national professional practice director, lead audit partner, and lead engagement quality partner.
Sunderland has 42 years of industry experience and previously held leadership positions with the auditing section of the American Accounting Association and with the Center for Audit Quality, where he chaired the research advisory board.
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Tags: Accounting, Auditing, Firm Management
