Where is the Future Taking Us? The Development of the Audit Profession

Author:Şerban TOADER, KPMG

JEL:M 42

DOI:

Keywords:audit, client-company, profession regulation, corporate governance, audit cost

Abstract:
UK research has showed that the audit profession retains a vital public interest function for all market players, in spite of the recession. But, change is inevitable and audit and related services reform should be aimed at providing greater transparency and more relevant financial and operational information. A broad review of the corporate reporting model, additional disclosures by management and a reconsideration of the roles of the auditor and Audit Commissions are required. A three-way open dialogue between auditor, prudential regulator and audited entity would enhance effectiveness of communication. \r\nImposition of artificial solutions by regulators will not only have a negative impact on audit quality but on financial costs as well. Empowering Audit Committees with the tools to properly address the concerns raised by policy makers must be preferable to imposing one-size-fits-all requirements that will disregard the specific needs of individual companies. \r\n

---