Audit watchdog says profession must up its game

News Article - 05 August 2010
Category: Business

The Professional Oversight Board (POB) has expressed concerns regarding the regulatory work of institutes, arguing that efforts to open up the audit market have had little impact. In a report to business secretary Vince Cable, the POB called for institutes to improve monitoring of auditors in the face of increasing pressure on the auditing profession.

Whilst the report commended some regulatory practices, which were completed to a high standard, it highlighted a number of recognisable public bodies where regulatory activity gave cause for concern. Specifically, POB executives called for approved training offices to be monitored more vigorously.

Other areas of concern included procedures for verifying audit experience before awarding qualifications, which need to be more robust. Complaints against auditors must also be investigated 'without undue delay,' to ensure a fair and reasonable outcome.

The POB report also expressed doubt that, without close monitoring, all recognised supervisory bodies will meet statutory obligations to inspect and review all relevant audit firms at least once in the six years from June 2008.

However, it did commend some bodies for taking positive steps in response to previous reports. Recommendations from the Market Participants Group on audit choice have been successfully implemented, but there is limited evidence to suggest a significant impact on market concentration.

Dame Barbara Mills, chair of POB, said the report came at a particularly pertinent time, when there was 'much debate on the value and nature of audit for the future."

The POB report will no doubt put further pressure on regulatory bodies to monitor auditors more effectively. Auditors will feel the pinch too, and will be required to more overtly display compliance with existing regulations. Companies may soon find auditors digging deeper into company accounts, and must ensure full financial disclosure is provided at each stage of the audit process. Access business auditing software can help, allowing a full transactional history to be kept. Auditors are able to drill down for each transaction and access copious information. For more information, please call Access on 0845 345 3300.

Article keywords: business news, enterprise software, accounting software, access group, auditors

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