Stakeholders Working in Concert... Deliver Audit Quality
Contrary to popular belief, auditing is not an exact science. There is a significant amount of professional judgement used in designing the audit strategy and in coming to the audit conclussions. So to make sure that auditors get it right every time, IAASB has issued an Audit.
Audit Firm Rotation - Risk vs Return
In April 2014, The European Parliament approved the new
EU Audit Regulation and Directive, which will require European-listed companies, banks and financial institutions to appoint a new auditor every 10 years.
This can be extended for a further 10 years if companies put their audit contract out to tender before the initial period is up or appoint another audit firm to do a joint-audit.
According to Steven Louw, Director: Department of Professional Practice: “At KPMG, we welcome changes that are aimed at improving the relevance and quality of audits and the promotion of sound capital markets and investor protection.
The Expanded Audit Opinion
“Auditors are straight-jacketed by the audit standards.” This is according
to Dr Terence Nombembe, Chief Executive of the South African Institute of Chartered Accountants (SAICA) at the Value of Audit roundtable hosted by KPMG.
The statement clearly rings true, as auditors in collaboration with clients are now beginning to look at different aspects of the organisation when preparing audit reports.