Auditors should reveal more about potential risk, say readers

by Beth Abel

More from this author

22 Feb 2013

  • Comments
nick land

AN EXTENDED AUDITOR REPORT will provide "more value" to stakeholders, according Accountancy Age readers.

Of 63 readers that voted, 62% said that auditors need to reveal more detail about potential risk, while the remaining 38% of readers said that auditors cannot rubber-stamp management's decisions.

Earlier this month, it was announced that auditors would be required to warn investors about the risks within the companies they audit. The new regulations, proposed by the Financial Reporting Council, were ordered as part of a "step change" in the way audit reports are structured.

Criticism that auditors' reports are uninformative has led to a consultation, launched by the reporting watchdog, to extend their scope to include a commentary of the "risks of material misstatement" identified by the auditor.

Nick Land (pictured), chairman of the FRC's audit and assurance council, said the new rules would provide a step change from the "traditional binary pass/fail model" of audit report.

He added that the proposals "close the circle" by requiring the auditor to disclose information about the audit, within the auditor's report itself.

The consultation period will end on 30 April 2013.

Take part in the latest Accountancy Age poll:

Will the Competition Commission's proposals achieve its stated aim of engendering greater competition in the FTSE 350 audit market?

 

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

Appointments to University Committees

University of Glasgow 120x60University of Glasgow - Glasgow - unremunerated positions

 

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

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.

cchcover

iXBRL: Taking stock. Looking forward

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.