PracticeAuditCIMA takes ‘objective’ look at auditors’ role

CIMA takes 'objective' look at auditors' role

The Chartered Institute of Management Accountants says it will set up a six-man working group to investigate auditor independence, an issue brought to the fore by the Enron scandal.

The working group will look at ‘evidence’ from the Enron saga with the aim of formulating a view on the role of auditors and establish the stance CIMA members should take on the issue.

Chief executive Charles Tilley told Accountancy Age: ‘CIMA is the only British accounting institute where members go directly into business and as a consequence of that we believe we can take a very objective view on the role of auditors.’

Tilley explained that CIMA members are not allowed to act as auditors because they proceed directly into business training rather than go through audit training as members of other institutes do.

Because of the urgency of the matter, the investigation would have to take place relatively quickly and would be completed by April or May at the latest, Tilley said.

He added: ‘Ensuring that the public has confidence in accountants and auditors is most important because it affects us all.’

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