PracticeAuditSuper audits mooted for companies

Super audits mooted for companies

Costly audits may be necessary to avoid further accounting scandals

Companies could be subject to ‘super audits’ if proposals by the global
accounting firms are accepted by business.

The six proposed this at the
Global Public Policy
Symposium
in Paris attended by audit firms, regulators and investors, in an
effort to pre-empt scandals which saw the demise of
Enron and WorldCom, The Times
reported.

Listed companies would have to submit their processes to intense scrutiny by
auditors – ranging from all company e-mails, to questioning of employees who may
also be compelled to make statements under oath.

PricewaterhouseCoopers senior
partner, Peter Wyman denied the idea was self-serving, and said the exercise,
which could cost in excess of ?100m, would be modestly expensive.

‘If people say it’s a bad idea, then they will have to accept that high-level
collusive fraud will occasionally occur,’ Wyman said.

Further reading:

Big Four demand real-time reporting

Fraud-busting
‘super-audits’ mooted

‘Big
Four’ Accounting Firms Call for Ditching Quarterly Results Reporting

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