Deloitte first off the mark with audit report

Deloitte publishes transparency report

Deloitte is set to become the first firm to publish an audit ‘transparency
report’ today.

The firm is the first large firm to comply with with requirements of the
Statutory Audit Instrument which came into effect in April this year.

Other firms, such as PwC and Grant Thornton, have voluntarily published
transparency reports in anticipation of the rules.

The transparency report covers firms’ processes for resolving conflicts of
interest and partner remuneration.

Deloitte’s report, a copy of which has been seen by Accountancy
Age, covers how the firm conducts a ‘hot review’ before any audit or other
opinion is signed, as well as how it has also developed a system of adaptability
which allows it to introduce rapid, but considered, changes and enhancements to
methodology and documentation within 24 hours.

‘As a result, we [are] able to roll out new requirements in rapid response to
the credit crunch and related challenges to the markets and to our clients,’ the
report said.

Audit partner Martyn Jones said the report was important to clients as they
could now see how firms managed their quality. ‘There is a lot of debate and
dialogue between directors and firms about how quality is dealt with,’ he said.

Audit managing director Vince Niblett said the biggest value of the report is
the way it gives a sense of what’s going on underneath.