Since its establishment in 1979, the QCIC has conducted hundreds of investigations and has instructed many SEC Practice Section member firms to take specific measures to improve their quality control processes.
If appropriate, the QCIC will refer a matter to the AICPA's Professional Ethics Division, which is responsible for investigating all allegations of misconduct by individual members.
Member firms of the SEC Practice Section are required to report to QCIC all litigation alleging deficiencies in the conduct of an audit of an SEC client within 30 days of service.
The QCIC does not duplicate the work of the courts, the Securities and Exchange Commission, state boards of accountancy, or other regulatory agencies.
All of the activities of the QCIC have been subject to oversight by the Public Oversight Board, and representatives of the SEC Chief Accountant's Office review the QCIC's closed case summaries.
The QCIC reads with considerable interest the letters written in connection with form 8-K reports by auditors who have been replaced.
But the QCIC has seen situations in which unrealistic deadlines appear to have contributed to problems covered in plaintiffs' allegations.
The QCIC still sees cases in which companies try to squeeze transactions that don't fit into the guise of generally accepted accounting principles.
Except in a few cases of fraud (and most cases reported to the QCIC don't involve fraud), deficiencies asserted against auditors do not suggest the auditors failed to discover relevant facts.
A primary concern of the QCIC
was that the guidance contained in SAS No.
The Executive Committee formed a Professional Issues Task Force (PITF) to consider matters requiring additional guidance, and emerging and/or unresolved practice issues resulting from firms' analysis of its litigation, the QCIC
process and other sources (e.