Thayer O’Neal has major strides during last year in becoming a globally recognized CPA and Accounting firm. It is therefore only natural that we research – and write about – the current state-of-the-art with global auditing.
A KPMG report indicates that 74 percent of 1,500 audit committee members in 35 different countries state that their job was becoming more demanding while 51 percent said that the job was growing harder with each passing year. Last year, IFIAR’s current chair, Janine van Diggelen, listed of some of the issues with global auditing, when addressing at a PCAOB (Public Company Accounting Oversight Board) meeting in London. She identified the main problems as being fair value measurements, risk assessment internal control testing and revenue recognition. The three categories of audit firm activities examined were:
- audits of listed public interest entities (PIEs);
- audits of systemically important financial institutions (SIFIs), including global systemically important financial institutions (G-SIFIs);
- and internal systems for firm-wide quality control, that is, inspections of the audit firms’ own quality control systems.
Practitioners and academics wonder if the answer to these problems lies in more rules and regulations. The PCAOB site and a recent article on Accounting Today with the alarming title “The Decline in Global Audit Quality” provide some more alternatives.