Audit News Briefing: 15 July 2016

Audit-is-cool is pleased to accumulate and provide its readers with the news on audit and related topics:

July 14, 2016

Business Wire (press release)

IESBA Redefines Accountants’ Ethical Role When Laws and Regulations Broken

International Federation of Accountants (IFAC) 32-page July 14, 2016 Publication: Responding to Non-Compliance with Laws and Regulations – http://www.ifac.org/publications-resources/responding-non-compliance-laws-and-regulations

The global organization for accountancy profession released this new standard today through its independent standard-setting board, the International Ethics Standards Board for Accountants (IESBA).

IESBA Technical Director Ken Siong: “The board carefully calibrated the standard based on the rich and diverse input from a wide range of stakeholders to ensure that it is proportionate and, importantly, globally operable … The standard fills a gap in jurisdictions where legislation or regulation does not address professional accountants’ responsibilities in these situations, and by providing helpful guidance it may well complement legislation or regulation in jurisdictions that do address it. This has been a long journey, and now it’s time for national standard setters, professional accountancy organizations, and accounting firms to adopt and implement the standard.”

Please follow link for details: http://www.businesswire.com/news/home/20160714005837/en/IESBA-Redefines-Accountants%E2%80%99-Ethical-Role-Laws-Regulations

July 14, 2016

Accounting Today

5 Questions to Ask Before Moving into Advisory Services

Accounting technology veteran Amy Vetter recently featured a new revenue generating undertaking – that is, advisory service. It is based on the Global SMP Survey by the International Federation of Accountants (IFAC) which revealed a 32% increase in advisory and consultancy service by small and mid-size firms in North America.

She have found in her career that auditors tend to have the most natural skills to transition into advisory work – “They’re used to reviewing financial statements for anomalies and asking questions. Shifting to advisory is a natural evolution of the work: instead of delivering a report, you’re sitting down with clients to discuss the report in the context of improving their business operations.”

Please follow link for details:

http://www.accountingtoday.com/accounting-technology/news/5-questions-to-ask-before-moving-into-advisory-services-78674-1.html

July 14, 2016

Economia

FRC survey reveals fears that audit profession becoming less attractive

YouGov Survey by the Financial Reporting Council (FRC): “There is growing concern that the audit profession is becoming less attractive as a result of increased public and regulatory scrutiny”

·         It was stressed that the audit profession’s recruitment, level of quality and judgment skill development are disadvantaged after the implementation of EU Regulation and Audit Directive (ARD) last month.

·         Related FRC survey of audit market emphasized the concentration of the FTSE 350 audit market in the Big Four firms.

FRC executive director for audit Melanie McLaren: “Our vision for audit is that it is trusted to provide reliable assurance on the public reporting of financial information, and in doing so, promotes good governance and facilitates the effective allocation of capital … The FRC’s strategy is to promote continuous improvement in audit quality. One of the key factors in achieving this is to engage with other regulatory professional bodies, auditors, audit committees and investors to communicate good practice.”

Please follow link for details: http://economia.icaew.com/news/july-2016/frc-survey-reveals-fears-that-audit-profession-becoming-less-attractive