Super audits mooted for companies
Costly audits may be necessary to avoid further accounting scandals
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
The numbers you crunch tell a story. Your expertis...
18yEmbracing 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 articleThe Bank of England has appointed Ernst and Young LLP (EY) as its external auditor from the financial year ending 28 February 2025. Read More...
View articleThis follows an investigation into undisclosed personal loans and issues with an acquisition. Despite challenges, the company aims to achieve £1bn in ...
View articlePwC's decision to delay promotions in its graduate scheme, affecting around 100 graduates, is a response to reduced client demand and the aftermath of...
View articleTraditionally, audit schedules have been prepared manually, consuming significant time and resources. However, with the advancements in Artificial Int...
View articleThe FRC is promoting initiatives to foster a more competitive market, following recent high-profile accounting scandals. Read More...
View articleOn January 27, it was reported EY had quit as auditor to Asda amid one of its senior partners starting a romantic relationship with billionaire chief ...
View articleDespite the increased interest in AI and ML, only 12% of respondents indicate their organisations have adopted AI and ML within their audit functions....
View articleAs the government's independent investigation progresses, it is hoped that a clearer picture will emerge, leading to meaningful reforms within the aud...
View article