Individual audit firms can do better, but overall audit remains in good
shape, the head of the UK’s largest accounting institute
said in a
Michael Izza, chief executive of the ICAEW, has rallied to the defence of the
profession after the release of the Financial Reporting Council’s critical audit
inspection unit (AIU) reports, yesterday.
The reports highlighted a number of troubling examples of audit firms signing
off on audits before their work is completed, directors signing off on audits
instead of partners, poor measurement of impairment and partners joining the
boards of their client-companies.
Izza said, at a macro level, audit was however shown to be robust.
“The most important message to be taken from the work of the AIU is that
there are no systemic problems with the quality of audit of UK listed companies,
nor in the processes followed by the firms who carry out these audits,” he said.
“Can individual firms do better? Of course they can. These reports have
identified areas which will help firms improve the quality of their audits and
maintain their independence, important to ensuring that they continue to retain
the trust and confidence of investors as well as other stakeholders including
audit committees and the general public.”
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