BDO USA LLP is taking steps to improve its audits, hiring a former Public Company Accounting Oversight Board official to join its audit leadership team, restructuring its assurance practice and creating a Quality Advisory Board. auditing.
As part of the restructuring, BDO’s insurance practice is split into two distinct functional areas and reporting structures. The first area brings together the operational, professional and customer service aspects of the business under one roof. The second functional area encompasses Quality Management, Inspections and Independence, and will report to Lillian Ceynowa, former PCAOB Associate Chief Auditor, who joins BDO as Head of Audit Quality and quality management.
Ceynowa has over 30 years of experience auditing public companies. She worked at the PCAOB for over a decade and was responsible for developing and advising on auditing and related professional practice standards, including auditor independence rules. Prior to the PCAOB, she worked for the Center for Audit Quality, the American Institute of CPAs and KPMG.
The new Audit Quality Advisory Board will provide the firm with information on its quality management system. The board includes an independent member, Jim Brady, vice president of advisory services at alliantgroup and former vice president at Grant Thornton, to provide a more objective perspective. Other board members include BDO’s Phillip Austin, William Eisig, Maria Karalis and Steven Shill.
BDO also released its latest Audit Quality Reportdetailing the firm’s commitment to achieving the highest audit quality standards.
“Providing high-quality audits is fundamental to building integrity, trust and confidence in the capital markets,” BDO USA CEO Wayne Berson said in a statement Monday. “By reinforcing our commitment to audit quality through these strategic initiatives, we seek to provide investors and other stakeholders with greater confidence in the global financial reporting ecosystem.”
Firms like BDO have taken steps to improve audit quality as the PCAOB steps up enforcement. In 2020, PwC formed a Quality Assurance Advisory Board with several prominent outside members, including former Securities and Exchange Commission Commissioner Troy Paredes, former Commerce Secretary and CEO of Kellogg Carlos Gutierrez, l ‘Former US Navy Admiral Carol Pottenger and former Financial Accounting Standards Board Chairman Russell Golden (see the story).