TORONTO, Jan. 20, 2014 /CNW/ - The audit profession must evolve to
remain relevant in today's rapidly changing global economic
environment. Without significant changes, the audit profession will
miss a critical opportunity to add value and offer insight to investors
and stakeholders. These necessary changes, along with pressing issues
facing the audit profession today are explored in the Value of Audit: shaping the future of corporate reporting, a series of candid, personal interviews with 16 of KPMG's global audit
"The expectation of audit firms has changed and we, as a profession, are
changing too," said John Gordon, Canadian Managing Partner, Audit, KPMG in Canada. "We're focusing more
and more on all the information that our clients and investors value."
Larry Bradley, Global Head of Audit, KPMG International, added "Auditors have broader
access to a company than almost any other entity or profession. It's
not just about a pass/fail report—we're in a unique position to provide
investors with all of the insights needed to make the right investment
The Value of Audit explores key issues impacting audits today, including:
The audit model and profession
Audit quality and value
Relationships and third party perception
Each interview delves into the current reality facing the audit function
and profession and asks interviewees to share their opinions on changes
needed to make the audit function more valuable.
The following are a sampling of quotes from interviewees:
"The biggest issue we face is the market's lack of understanding of what
we do as auditors and how to interpret our audit opinion. Far too many
people look on the audit as an insurance policy—a 'guarantee' against
all things of a financial, risk, management or regulatory nature that
may befall a company." Jim Liddy, Head of Audit, KPMG in the US.
"Auditors have insights that are not getting outside the company. I can
see many people saying you can't have auditors talking to investors but
there must be a way of communicating with investors that might be
valuable to them and would restore some trust in the audit process." Tony Cates, Head of Audit, KPMG in the UK.
"Currently we say 'yes' or 'no' in an audit opinion. We could express
our opinion on many more things if the liability regime and regulation
were different. It would be good for the capital markets to have an
additional statement on the robustness of the model and the risks and
opportunities associated with the business model." Ingmar Rega, Head of Audit, KPMG in Germany.
"Financial statements are like looking in the rear view mirror of a car.
It can be interesting to learn about a place you're never going to see
again. But it's not so relevant to where you are going." John Gordon, Head of Audit, KPMG in Canada.
KPMG welcomes the recent proposals from the International Auditing and
Assurance Standards Board (IAASB) to expand the auditor's report to
give increased information on the matters the auditor determined to be
of most significance in the audit.
The IAASB's proposals are an important first step towards better meeting
the needs of users who want more insight into the audit that was
performed than is possible under the current reporting model.
Larry Bradley's Interview - on changes needed to the audit profession
Value of Audit website - all full interviews
@KPMG_Canada - #valueofaudit
KPMG on LinkedIn
KPMG LLP, an Audit, Tax and Advisory firm (kpmg.ca) and a Canadian limited liability partnership established under the
laws of Ontario, is the Canadian member firm of KPMG International
Cooperative ("KPMG International"). KPMG member firms around the world
have 155,000 professionals, in 155 countries.
The independent member firms of the KPMG network are affiliated with
KPMG International, a Swiss entity. Each KPMG firm is a legally
distinct and separate entity, and describes itself as such.
SOURCE: KPMG LLP
For further information:
National Advisor, Communications
KPMG in Canada
416 777 8928
National Manager, Communications
KPMG in Canada
416 777 3988