Future of audit

Question 1

What were the key reccomendations of the Kingman Review?

Answer 1

• Regulatory change is necessary
• Split audit firms into separate audit and non-audit businesses
• Greater scrutiny of audit committees
• Mandatory joint audits between big four and other accounting firms

Key reccomendation
* FRC to be replaced with a more powerful body; ARGA
* FRC expect ARGA to be fully operational by 2025

Question 2

What were the key reccomendations of the Brydon Review?

Answer 2

5 Key Points
* Redefining what audit is; creating a separate auditing profession
* Auditors should adopt the idea of suspicion and audit beyond financial statements
* Greater engagement between auditors and their stakeholders
* Changes to the language used in opinions and greater use of technology in audits
* More formal reporting outputs that support corporate continuity

RSS the fuck??