Australian Securities and Investments Commission: Auditors lack scepticism
Says auditors should provide more evidence to support their opinions
Says auditors should provide more evidence to support their opinions
AUDITORS MUST be more sceptical of management judgements and provide greater evidence to back up their conclusions, according to a new report by the Australian Securities and Investments Commission.
Among the Big Four, 17% of audits lacked sufficient evidence to support the opinions given, and the number rose to 31% in smaller firms, the Sydney Morning Herald reports.
The classification of loans as current (due within 12 months) or non-current is among the major problem areas; difficulties here recently led to a breach of company law by the directors of a debt-ridden shopping centre.
ASIC accounts and auditors team leader Doug Niven said that firms must develop a culture of professional scepticism, warning that auditors should challenge management conclusions ”rather than selectively seeking out evidence that will give you the answer that supports the judgement that has been reached”.
Going concern was another area highlighted by the regulator, indicating that some of the shortcomings it has highlighted might be applicable to firms in the UK.
More about:
The numbers you crunch tell a story. Your expertis...
13yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThere is usually a silver lining to every dark cloud, and the one hanging over the UK accounting sector is no exception, says Leon Kamhi, Head of Resp...
View articleUnstructured, broader, real-time data - and who wants to use that information - is having a massive impact on the direction of travel for the audit pr...
View articleLucrative GSK audit shifts to Deloitte from PwC Read More...
View articleHMRC receives highest number of complaints in seven years; Deloitte scoops BP and Centrica audits; and corporate reporting under the microscope in our...
View articleBDO has scooped the audit role from Deloitte who were the previous auditors for Game Digital Read More...
View articleBDO’s investments in digital, its international network and culture meant it was “perfectly placed” to succeed, according to new managing partner Paul...
View articleHead of editorial Kevin Reed discusses the accountants in the new cabinet; the FRC's report into audit market concentration; and the Top 40 Internatio...
View articleThere are a few key considerations for auditors as they plan upcoming interim reviews and year end audits in light of the Brexit vote Read More...
View article