Scottish accountants cautiously welcome audit inquiry

THE HOUSE of Lords audit inquiry has received a cautious Caledonian welcome, as the Institute of Chartered Accountants of Scotland greeted some of the recommendations with enthusiasm.

The professional body eagerly approved of enhanced audit committee reports, saying this would improve understanding and “demonstrate the full value of the audit process”.

David Wood, executive director of technical policy, said tendering and financial reporting issues should be laid bare, claiming this would help investors appreciate the “challenges and judgements” of auditors and management.

The regulator made no comment of the Lords’ criticism of the plurality of professional bodies in the industry, nor of their worries about the shortcomings of international reporting standards.

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