Study attempts to demystify audit

The authors of Behind Closed Doors: What Company Audit is Really About claim the report sheds light on the factors that influence the nature and outcome of key audit interactions. It also reveals both sides’ perceptions of how contentious and non-contentious issues are resolved.

Six listed companies were identified and used for the study which helps reveal the factors influencing both the interaction process and strategies adopted, as well as the critical factors determining the quality of the financial reporting outcome and the ease with which it is achieved.

Authors Stella Fearnley and Richard Brandt of the University of Portsmouth, Vivien Beattie of Stirling University believe their study is evidence of successes arising from the audit process.

‘Because of confidentiality constraints between auditors and clients, this kind of evidence is usually hidden, whereas the small number of failures, which do reach the public domain, attract a great deal of attention,’ said Fearnley.

Copies of Behind Closed Doors: What Company Audit is Really About are available from Palgrave Publishers on +44 (0)1256 302699.

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