PracticeAuditDiesel FD calls for new auditing regime

Diesel FD calls for new auditing regime

A totally new way of auditing is the solution to the current collapse in investor confidence following US corporate accounting scandals, a UK finance director has argued,

Link: Read the DTI’s audit report

In an exclusive interview with Accountancy Age, Annie Guerard, UK finance director of alternative fashion label Diesel, said: ‘The whole of the audit profession is totally shaken at the moment and we have to rethink the industry.’

Her comments come in reaction to a series of accounting scandals in the US that have rocked investor confidence around the world and led to a number of inquiries into the accountancy industry both in the US and the UK.

Guerard steadfastly placed her focus on internal controls suggesting the way to move forward was to rethink external auditing or develop larger internal audit controls. ‘I think the key to the future of finance is how to apply counter checks. Should there be an external audit function or a bigger internal one?’ asked the CIMA-qualified accountant.

Such comments will undoubtedly anger the auditing profession, which has vehemently denied there are fundamental problems with the process of auditing, but rather an expectation gap between what is expected of auditors and what they can realistically achieve.

The full interviw with Guerard will appear on the site tomorrow.

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