Sarbanes-Oxley

Audit International, the leading specialists in Internal and External Audit Recruitment across Europe, the US and Asia have recently learned the ACCA (Association of Chartered Certified Accountants) welcomes and approves the IAASB’s (International Auditing and Assurance Standards Board new revisions to International Auditing Standards (ISAs)

The pursued aim of the revisions to ISAs is to ensure fundamental and relevant audit matters are explained and communicated to the end user clearly and accurately.

Enhancing both transparency around the audit and innovation in audit reporting, ACCA sees this improvement in auditor’s reports as crucial to the future value of audits.

Furthermore, ACCA believes the revisions are just in time as the value of audit continues to be challenged.

Recently, Robert Stenhouse Chair of ACCA’s Global Forum for Audit and Assurance, declared: “ACCA believes audit has a very important place in society. It provides public value through increasing confidence in financial reporting. For global capital markets this facilitates the efficient allocation and use of capital. The benefits of audit are also strongly felt in the public and not for profit sectors. The new standards are consistent and clear, and above all relevant across a very wide user base”

He also added: “ACCA sees this improvement in auditor’s reports as crucial to the future value of audits”

Robert Stenhouse considers ACCA has taken a keen and proactive interest in the developments of these new auditor reporting standards. However, he warned and concluded:  “Our work does not stop here. We will continue to champion their effective implementation and encourage our members to be bold in their use of the new standards to put on display the fantastic work they do”

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com

Audit International, the leading specialists in Internal and External Audit Recruitment across Europe, the US and Asia have recently learned about the results of Audit report awards, organized by IMA, the worldwide association of accountants and financial professionals.

Three of the Big Four audited all the winning companies and the runners-up in all three categories – FTSE 100, FTSE 250 and FTSE Small Cap and AIM.

The firm which won the most mentions was KPMG. They audited three of the winning companies and five of the runners-up. Furthermore, PwC audited two winners and Deloitte audited one winner and a runner-up.

There were two awards in each category. The first award was for the most insightful audit report, which recognises the reports that give the most entity specific and enlightening information for investors to use when engaging with the audit committee.

The second was for the most innovative reports, which identifies those reports where the auditors have thought outside the box to find a way to present their findings in an engaging and readable way.

Mentioned awards were set up in the light of the introduction last year of the Financial Reporting Council’s enhanced auditor reporting rules. After the ceremony, IMA’s chief executive Daniel Godfrey declared “The success of the new audit standard is of paramount importance to the investment industry,”

He also added “Our awards are held in recognition of this alongside commending greater transparency and excellence in auditor reporting and supporting the industry’s progress.”

One of the night’s protagonist, Tony Cates as KPMG’s UK head of audit, gladly declared he was delighted with the awards which vindicated the decision to go beyond the FRC’s requirements and pilot three audit reports which included commentary from the individual audit partner on the audit findings.

In addition to that he said “This discussed qualitative matters in order to help give colour, depth, and so create a better platform for engagement between shareholders and the company”  “Those pilot reports and others have been recognised in these awards.”

Finally he concluded, “Continuing change is needed, and that is why earlier this autumn we set out a new policy of going further by reporting our audit findings where the company engages us to do so.”

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com

Audit International, the leading specialists in Internal and External Audit Recruitment across Europe, the US and Asia have recently learned of the results of a new survey conducted by Advisor Rankings that the leading audit firm PwC has become the lead AIM 100 auditor, overtaking its direct competitors after it gained three new AIM 100 clients this last quarter.

According to a quarterly report, there have been no changes in position in the full AIM rankings, which, the report says, is due to a usual period of calm in activity in the audit sector this quarter. The relative inactivity in the AIM audit market now “stands in contrast to the main board,” the report said.

In addition, mentioned report shows that BDO has retained its dominance over the full AIM market with 155 clients, despite losing seven clients this quarter. The American audit firm Grant Thornton has also lost two clients, but retains second place in the rankings with 147 clients. KPMG has 146 clients, gaining three this quarter and PwC is in fourth place with 114 clients. Deloitte is in fifth place among the main audit firms with 85 clients, followed by EY (68, down from 70), Baker Tilly (55, down from 59), Crowe Clark Whitehill (40, up from 39), UHY Hacker Young (32, up from 30) and Nexia Smith and Williamson (25).

As a conclusion the report shows that PwC’s success has been in the face of challenging audit market conditions. It considered, “The gains achieved through the period meant that the aggregate value of PwC’s stable was only down slightly on the previous quarter despite the general audit market decline.”

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com

Audit International has learned that for Auditors and best practices, rotation is key!  For publicly traded companies, the audit process is among the more arduous and mundane of all corporate responsibilities.

It claims the precious time spent and attention of senior management and executives and is neither strategic nor contributory to company profits or shareholder value. And in the Sarbanes-Oxley era of more regulated corporate governance—in the wake of Enron, MCI WorldCom, and other such scandals—the audit process has only grown in intensity, prompting an exodus of senior in-house accounting and financial executives to private companies.

But despite the enhanced governance requirements of the last ten years, audit quality continues to slip. The Public Company Accounting Oversight Board is still finding deficiencies in audits conducted by the Big Four. In a recent Wall Street Journal article, the chief auditor at the PCAOB stated, “When we look at an audit, the rate of failure has been in a range of around 35 to 40 percent.”

 

Competition in the audit market has all but disappeared. In the U.K., the Big Four accounting firms hold the auditing business for 99 percent of FTSE 100 companies. In the U.S., those same four companies collected over 94 percent of all auditing fees in 2010.

In the interests of improving audit quality, preventing against early 2000s-style corporate scandals and protecting the investor, regulatory authorities across the globe are looking at both the audit market and the relationship between company and auditor and are putting in place mandatory audit rotation. That is, a legal requirement that companies put up for tender and potentially change their auditor every number of years. The EU has already enacted such regulation, requiring most companies to put their audit business up for bid every 10 years. And there is a growing clamor for similar regulation in the U.S.

We will have to wait and see if this regulation improves the working life of internal auditors.

 

For jobs with some of the leading international consulting firms across the world as well as tier one multinationals, please contact Audit International on 0041 4350 830 95 or else email your current cv to info@www.audit-international.com