Audit Quality Forum celebrates 2nd anniversary

The Audit Quality Forum celebrates its second anniversary today.

The body was launched two years ago to facilitate business and the profession working together to promote constructive dialogue in areas that required further exploration because of their technical, legal and practical nature.

The AQF's first five topics included audit engagement letters, identifying the audit partner, questions to the auditor at the AGM, auditor resignation statements and competition and choice in the listed audit market.

The AQF can be credited for putting out an interim paper on Competition and Choice, and then called for further research, subsequently commissioned by the DTI and the FRC, resulting in the publication of the Oxera report.

The AQF continues to explore a broader agenda examining the relationships between shareholders, management, auditors, regulators and other stakeholders in the audit.
Ernst & Young partner, Gerald Russel, who heads up the AQF, said the body was formed initially to bring together investors, corporates, regulators and the profession to explore improvements in Audit Quality.

'Our first year was largely tactical with issues such as engagement letters, resignation statements, naming the audit partner, etc. Our second year saw a shift to more fundamental issues with less numerous but more in depth questions, e.g. the reporting framework. Going forward, I am sure the AQF will continue to be a good forum in which to formulate suggestions on matters of investor/preparer/auditor issues,' said Russel.

Further reading:

Competition report: 'What everyone expected' – AQF

Competition report: shake-up to follow DTI audit probe

Company records to be exposed