THE INTERNATIONAL AUDIT STANDARD SETTER is calling for public comment on a new consultation paper to address audit quality.
The International Auditing and Assurance Standards Board (IAASB) has put its A Framework for Audit Quality out for consultation this week.
Respondents are asked to look at whether the framework is clear, comprehensive and useful. It also highlights a number of areas to develop in the financial reporting supply chain that may benefit audit quality on a global basis, which the IAASB hopes will be looked at by both auditors and stakeholders.
The consultation aims to raise awareness of the key elements of audit quality and to encourage stakeholders to look at ways to improve them and develop better dialogue with auditors.
"While the IAASB recognises that high-quality auditing standards and well-qualified, competent, sceptical auditors are essential to a quality audit, there are many factors that contribute to maximising the likelihood of quality audits being consistently performed," said IAASB chairman professor Arnold Schilder.
"There is value in identifying and describing these factors and, thereby, encouraging audit firms and other stakeholders to challenge themselves to think about whether there is more they can do to increase audit quality in their particular environments."
Does a report on an entities activity improve the quality of its output?
In the same manner does an audit report improve the quality of an entities produced financial statements?
If an audit assessed the management system that produced the financial statements and found them wanting, corrections would need to be made. On the other hand if the assessment found that the management system was sound then wouldn’t the financial statements produced by the management system be found to be acceptable?
Posted by: Clifford Moggs, 24 Jan 2013 | 19:52
You may also like
If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.
In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.