Calls made for greater transparency for auditors

News Article - 20 August 2007
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Auditors' work should be more transparent, according to a new survey by accountancy firm BDO Stoy Hayward.

The study conducted by the firm found that most analysts and investors preferred more disclosure, claiming that this could provide greater assistance when making decisions about investments, the Financial Times reports.

Jeremy Newman, managing partner of the firm, said: "It is vital that the public reports contain sufficient detail to be of real value to investors."

They should also offer information on the strength of the audit firms to help improve confidence within the process, he added.

The Local Authority Pension Fund Forum recently found that 23 per cent of companies do not provide adequate reports on what their audit committees do to their shareholders.

In light of the study, the organisation called for the Combined Code on Corporate Governance to include a more detailed report on a firm's audit committee, rather than a summary.

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