Value of Audit: shaping the future of corporate reporting
The audit profession must evolve to remain relevant in today’s changing global economic environment. Without significant change, the audit profession will miss a critical opportunity to add value and offer insight to investors and stakeholders. These changes, along with pressing issues facing the profession are explored in the first phase of the Value of audit: shaping the future of corporate reporting, a series of candid interviews with KPMG’s audit leaders from around the world.
“As auditors, our primary product is based on a historical set of statutory financial statements,” Larry Bradley, global head of audit, KPMG International, says. “But stakeholders are increasingly basing decisions on information that resides outside those statutory account.
The Value of Audit explores this key issue and others that are impacting audits today including:
- The audit model and profession
- Audit quality and value
- Relationships and third-party perception
Each interview explores the reality facing the audit function and profession and asks interviewees to share opinions on changes needed to help make audit more valuable.
Audit issues in South Africa
KPMG in South Africa will host the next roundtable in Johannesburg on 5 August. In attendance will be representatives from key audit stakeholder groups and focus on issues relevant to audit in South Africa. The roundtable will be hosted by Edson Magondo, Head of Audit, KPMG in South Africa, and Jose Rodriguez, Chief Operating Officer, KPMG International, and the discussion will be moderated once again by Richard Cree.
What we’ll be talking about during the roundtable
- How well does the current corporate reporting model, which traditionally has been based on historical financial performance, serve the needs of the capital markets? How could it be improved?
- With integrated reporting now established in S.A., how widely has it been implemented and how would you characterise its impact?
- Has the relationship between the audit partner, CFO and audit committee chair changed in recent years? What impact have other stakeholders in the audit, particularly investors, had on auditors and management?
- Are there areas outside of the financial statement audit where we as a profession could be providing assurance? Currently, the integrated report in SA is not audited. Do you expect demand for assurance over an integrated report (or elements thereof ) to develop?
- In the UK Value of Audit Roundtable, several participants saw a better understanding of audit quality – what it is, how to assess it and how to improve competition on the basis of audit quality
- EU Audit Reform is having a significant impact on business around the globe. What does it mean for the profession? What influence is it having on the audit quality debate?
In attendance at the roundtable
on 5 August
- Bernard Agulhas, CEO at the Independent Regulatory Board for Auditors (IRBA)
- Colin Brayshaw, Non-Executive Chairman for Coronation Holdings
- David Broom, Partner FS Audit Johannesburg, KPMG in South Africa
- Richard Cree, editor-in-chief, economia
- Trevor Hoole, Partner, Clients and Sectors FS National, KPMG in South Africa
- Judge Professor Mervyn E. King, Chairman, International Integrated Reporting Council (IIRC)
- Mike Leeming, Non-Executive Director AECI
- Edson Magondo, Head of Audit, KPMG in South Africa
- Tracy Middlemiss, Partner FS Audit, KPMG in South Africa
- Muneer Hasan (SAICA)
- Dr. Terence Nombembe, CA(SA), Chief Executive Officer SAICA
- Jose Rodriguez, Chief Operating Officer, Global Audit, KPMG International
- Aarti Takoordeen, Chief Financial Officer at Johannesburg Stock Exchange (JSE) Limited.
- Rene van Wyk, Registrar of Banks, South African Reserve Bank