Future of Audit after the Financial Crisis

Author:Smaranda ŞTREANGĂ

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Keywords:corporate governance, fraud, going concern, stakeholders

Abstract:
In the current economic context, rushed reactions which had no success in other economic downfalls would be an unfortunate solution. ACCA is worried by the fact that we might reach a situation when stricter rules are implemented fast without any feasibility studies instead of placing a focus on correctly implementing the current legal and regulating measures. Their transparency is also a very important factor.\r\nEuropean institutions have received proposals to completely exempt micro-companies from issuing accounting reports. This would have serious implications and the fact that accounting information will disappear from the public domain should be a cause for concern. Fraud, money laundery, bribery and corruption, thriving in economic recessions, will have great chances of passing unnoticed.\r\nThe main mistake that the auditors have made was that of underestimating the importance of the forecasts of the financial-banking institutions regarding their future.\r\nThe audit role is to instill discipline, financial rigor, better corporate governance and can minimize risk of fraud. Unfortunately there is still a discrepancy between what the public expects from the audit profession and what the auditors know their role to be. The article approaches some key aspects considering the fact that they will determine the future role of audit: going concern, stakeholders, regulators etc.\r\n\r\n

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