We’ve recently seen many changes designed to enhance independence and objectivity. We believe there is room to build on the safeguards and reforms already in place.
Auditors' scope of services
Some argue that allowing auditors to carry out any non-audit services for their audit clients weakens their independence, objectivity and professional scepticism. Here’s why we disagree.
Benefits of scale
Competition is good for everyone. But its benefits cannot be achieved by artificially limiting the choices companies have in choosing their auditor. Large, global companies require an audit firm of comparable size and scale.
Governance and transparency of the audit
Audit committees are fundamental to the integrity and quality of the audit. They contribute significantly to effective financial reporting and the performance of the audit. We need to build on existing frameworks to make the process universal and more transparent.
Mandatory firm rotation
We believe that recent proposals to mandate the rotating of audit firms would significantly reduce the quality of audit and the reliability of financial reporting.
Competition and choice in the audit market
We believe competition among audit service providers is good for everyone -- but artificial market interventions are not the answer to maintaining continuous quality improvement and a competitive landscape.