ACCA (the Association of Chartered Certified Accountants) has today responded to A Framework for Audit Quality, a consultation paper from the International Auditing and Assurance Standards Board (IAASB).
John Davies, ACCA head of technical, said: 'The Framework gives preparers, auditors, shareholders, regulators and others a shared understanding of audit quality. The IAASB has set down what is important to audit quality and what is crystal clear is that it's not about the auditor. Although auditors have to comply with stringent quality control standards, all the stakeholders in the corporate reporting supply chain have to pull together to maximise audit quality. The Framework communicates that and, if the message gets across, it will be of great value in improving audit quality.'
ACCA's response notes that, while the Framework primarily has a communication role, its success will ultimately be judged by its contribution to the continual improvement of audit quality to meet the needs of society. ACCA knows that audit plays a very important role in society. It increases user confidence in the credibility of corporate reporting and facilitates the efficient allocation and use of capital. The benefits of audit are also strongly felt in the public and not-for-profit sectors. It is implicit that audit must be of a consistently high quality.
As the global body for professional accountants, ACCA is committed to doing all it can to embed audit quality in our education, qualification, support and regulation of audit professionals and firms and in furthering the profession's contribution to society in the wider sense.
John Davies continued: 'We suggested that the Framework should firmly adopt the shareholder perspective in judging the importance of factors relevant to audit quality and also go deeper to reveal the complex interactions between them. It should inform debate, such as about mandatory rotation of auditors – stakeholders need information so they can make informed choices between alternative policies and actions. We also suggested that the Framework should do much more to recognise the importance of innovation and frankly, what hinders it, such as fear of litigation.'
He concluded: 'Finally, we wanted the Framework to make the link to a sustainable environment, economy and society; because it is important to judge audit quality in all the dimensions of modern business activity.'
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For more information, please contact:
Steve Rudaini, ACCA Newsroom
+ 44 (0) 207 059 5622
+44 (0) 78011 33985
Helen Thompson, ACCA Newsroom
+44 (0)20 7059 5759
+44 (0)7725 498654
Notes to Editors
- ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.
- We support our 154,000 members and 432,000 students in 170 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of over 80 offices and centres and more than 8,400 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence.
- Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. Our values are aligned to the needs of employers in all sectors and we ensure that through our qualifications, we prepare accountants for business. We seek to open up the profession to people of all backgrounds and remove artificial barriers, innovating our qualifications and delivery to meet the diverse needs of trainee professionals and their employers.