‘Appraising Your Auditors’ examines the audit relationship from the client point of view and was produced in response to repeated requests from members in business for guidance on auditor selection, said David Wood, assistant director of accounting and auditing at the institute.
The guide includes a checklist of issues to help the audit committee review the audit process and discusses the role it should play in ensuring audit quality and independence. Copies have been sent to all listed companies.
Deloitte & Touche senior partner and chief executive John Roques, who served on the institute’s working party, dismissed the suggestion that annual audit reviews would encourage companies to change auditors more often.
‘Many listed companies do carry out annual reviews, both formal and informal,’ said Roques. ‘If they communicate areas where the auditor’s contribution could be enhanced, they would improve relationships and performance.’
PricewaterhouseCoopers audit technical partner Tony Bingham added that while the paper was explicit in recommending an annual review, it was merely formalising the Hampel recommendations on corporate governance.
‘On-going dialogue between the external committee and auditors is a good thing and need not mean a higher rate of churn,’ he said. ‘Changing auditors is not necessarily in the interests of the shareholders.’
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast
Accountants should alter their perspective on auto-enrolment to maximise business opportunities, according to Eric Clapton.
Kevin Reed discusses whether new accountancy group Cogital can rival the Big Four...and its likely direction of travel