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 audit leaders from around the world.
“As auditors, our primary product is based on a historical set of statutory financial statements,” said Larry Bradley, Global Head of Audit, KPMG International. “However, stakeholders are clearly increasingly basing their decisions on information that resides outside of those statutory accounts.”
“Auditors have broader access to a company than almost any other entity or profession,” said Larry Bradley. “We are in a unique position to deliver more than a pass/fail report. I think what we’re finding is delivering this kind of report is not providing investors with all of the insight that they need in order to make their investment decisions.”
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,” said Larry Bradley.
The Value of Audit explores this key issue and others that are impacting audits today including:
Each interview delves into the current reality facing the audit function and profession and asks interviewees to share their opinions on changes needed to help make the audit function more valuable. The following are a sampling of quotes from interviewees:
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KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 155 countries and have more than 155,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
The views and opinions expressed herein are the personal opinions of the interviewees and authors based on their personal experience working as Auditors in the industry and do not necessarily represent the views or opinions of KPMG International or any KPMG member firm.
KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 155 countries and have 174,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.