Auditors, organizations and investors all have important roles to play in working to maintain the flow of capital that underpins the capital markets.
The value of audit and its role have come to the forefront of an international debate.
To remain relevant, the audit model must evolve as business needs and risks evolve. At KPMG, we recognize the importance of bringing together all stakeholders to discuss the challenges facing today’s corporations and to identify opportunities to enhance the financial statement audit and corporate reporting process so that they remain relevant.
In 2015, we completed the first phase of our Value of Audit program – engaging with audit committees, regulators, standard setters and management to understand their views on audit quality, the role of audit, and audit innovation. Read a summary of the results.
Now, we have embarked on the next phase of engagement in the form of a direct dialogue with investors. The International Corporate Governance Network (ICGN) is an investor-led network with a mission to influence, connect and inform stakeholders around corporate governance issues. KPMG is holding discussions with their members on the role audit plays in investment decisions, and how the corporate reporting process can be improved to better support the flow of capital that underpins financial markets.
We hosted two sessions at ICGN's Kuala Lumpur Annual Conference in July: a debate focused on advancing the governance agenda, followed by a session addressing the negative implications of short-term strategies. We also hosted sessions with audit committee chairs, investors and auditors at the ICGN's regional Frankfurt Conference and ICGN London conference.
Given the multitude of pressures facing investors in capital markets globally, it is imperative that audits and corporate reporting continue to provide them, along with other stakeholders, with the assurance they need to make sound financial decisions. We look forward to having the investor voice at the table as we envision the future of audit.
The Madrid, Spain roundtable discussions focused on independence, greater transparency on companies, regulation and EU audit reform.