BDO releases audit quality report, adds to advisory council

BDO USA released its 2023 Audit Quality Report Tuesday as it added a second independent member to its Audit Quality Advisory Council.

In the report, the Chicago-based firm described how it's been implementing multiple strategic initiatives to strengthen audit quality since 2022, including the deployment of a reimagined approach to learning, an enhanced approach to audit phasing, the implementation of a new methodology enablement group, the continued nationalization and standardization of its assurance practice, as well as the continued expansion of its digital audit suite. 

The firm also added John Fiebig as the second independent member of its Audit Quality Advisory Council, which was established in 2022 to provide input on the firm's system of quality management and advise BDO USA CEO Wayne Berson and the firm's board of directors on audit quality matters. 

Photo: Richard Falco

Fiebig is president of Adigeo Consulting LLC, a consulting firm that focuses on advancing audit quality, and has over 30 years of experience in the audit and accounting profession as a former practitioner and regulator who helps clients improve their system of quality management.

"John is an important addition to our Audit Quality Advisory Council," Berson said in a statement. "His passion for excellence in audit quality, coupled with knowledge and experience as a former regulator at the Public Company Accounting Oversight Board, are of tremendous value in our journey of continuous improvement."

The audit quality report noted that 177 of the firm's engagements were internally inspected in 2023, and 98% of engagements inspected by the PCAOB over the last three inspection cycles did not result in a financial restatement or Internal Control over Financial Reporting opinion. On average, BDO assurance professionals completed two to three times the average annual CPE hours required by standard-setters. The firm delivered over 81,000 hours of learning through its new Audit Quality Learning Journey programs, while over 413,000 audit quality hours were contributed by professional practice, quality management, independence and inspection professionals. Approximately 10,000 eligible BDO employees in the U.S. participate in BDO's employee stock ownership plan, which was established last August. The ESOP is giving employees a stake in the firm's success and may help attract new employees. 

"There's definitely a lot of interest," said BDO USA recently-named COO Mark Ellenbogen, who will be succeeding Steve Ferrara on July 1. "It seems like we're slowly starting to realize the benefits of that, and there's definitely a lot of an outside interest in the firm now that we've done that."