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  1. #1
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    Default PwC chief wants client conversations public

    Mario Christodoulou, Accountancy Age, Thursday 7 October 2010 at 10:13:00

    Big Four firm attempts to take lead in audit reform debate


    Lead PwC audit partners will ask their clients to divulge confidentialinformation in a move aimed at reforming the audit model in the wake of thecrisis.

    Ian Powell, chairman ofPwC, toldan audience of 300 business professionals that the audit model needed reform,and some internal discussions privately held between an auditor and company needto be made public.

    ?It may well be that by making more of those discussions public, the value ofan audit can be collectively improved,? he said.

    ?I have asked our lead audit partners to discuss this idea with auditcommittee chairs of PwC clients to see if we can work together on a voluntarybasis to improve the disclosure of such matters over the next reporting cycle.?

    The comments come as the European Commission prepares to release agreenpaper on audit competition, due later this month, and the House ofLords prepares to hear evidence on the issue next week.

    Powell is the second senior Big Four accountant to speak out on audit reform.In June, John Griffith-Jones, senior partner at KPMG, said the audit model ?islong overdue [for] some serious market-wide discussion".

    There has been wide discussion in professional circles about the need foraudit reform. In April, Guy Jubb, investment director and head of corporategovernance at Standard Life Investments, described the audit report as?boilerplate of the highest order? riddled with get out of gaol free clauses?.In July, The ICAEW released a study which found that ?insufficient informationis provided under the current framework about the work that underpins an audit?.

    Powell said the audit profession had failed to explaining the ?what auditis?.

    ?And if we don?t, then we can hardly complain if auditing is not wellunderstood,? he said.

    Technical complexity and volume had grown in recent years at the expense ofcomprehensibility.

    ?There is a need for better connectivity between governance, remuneration,risk and sustainability information,? Powell added.

    Further reading:

    Audit:time for change

    Vivala audit revolution

    Investorconfronts auditors on reform

  2. #2
    Junior Member
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    May 2008
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    kenya
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    Default

    i highly doubt if the same can apply in Africa where i am, most companies rarely give confidential information to auditors, especially when it comes to sensitive reasearch and development projects that are meant to be of a huge competitive advantage .

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