The role of audit is currently under heightened scrutiny. The global financial upheaval of the past three years has seen commentators questioning the value of large company audit.
In a separate agenda, some governments have sought to minimise audit and other reporting requirements for many small businesses by lifting the audit exemption threshold. They have equated audit to 'red tape', portraying it as a burden on small businesses from which they need to be freed.
ACCA believe it's vital that the accountancy profession re-examines the role of audit. The profession should consider whether a sufficiently strong case is being put forward of the benefits audit can provide businesses, the economy and society.
There is little published research which demonstrates the value of audit and assurance in promoting business confidence. We strongly believe that the audit is not 'broken', but needs to have its value constantly tested against the demands and needs of users and beneficiaries of assurance.