Stephen Haddrill, Chief Executive of the Financial Reporting Council, spoke at the ICAS Aileen Beattie Memorial Event at Stationer’s Hall yesterday. In light of the longer term lessons of the financial crisis, he said that the FRC believes it is time to review the value of the audit and whether it can be enhanced. Click
here to read his speech. He announced that the FRC would be publishing its thinking on this later in the year.
He argued that:
“Audit is a key part of high quality governance. The auditor sees the company’s approach to risk. The auditor challenges management’s judgement on the financials. The auditor reports to shareholders on whether the company is providing a true and fair view of the business. The investor only sees the tip of the iceberg of work. But nevertheless investors are relying on that work being done.”