The International Federation of Accountants has released a set of recommendations for achieving high-quality audits as regulators around the world push for more thorough audits to avoid accounting scandals.
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IFAC called on auditing firms, professional accountancy organizations, regulators, audit committees, and audit and assurance professionals to:
- Approach audits as a value-added service, not as a compliance exercise;
- Evolve new assurance services to meet the needs of all stakeholders;
- Ensure diversity in hiring practices,
- Enhance transparency and communication from audit committees, firms and professional accountancy organizations; and
- Adopt a prudential and evidence-based approach to regulation.
“Audits contribute meaningfully to the functioning of organizations, financial markets, and economies,” said IFAC CEO Kevin Dancey in a statement Wednesday. “While many thousands of audits are conducted each year without any issues, improvements are needed to ensure consistent high quality. This, however, cannot be achieved in a vacuum – all participants in the audit and assurance ecosystem must work together to achieve high-quality audits 100 percent of the time. It is a vital part of our profession’s public interest mandate.”
