Friday, February 4, 2011

Auditors Must Treat Shareholders As Their Client

Via Accountancy Age.
"The board should set out the rationale and examples of why their business is a going concern," said Nisbet. "There should be an explicit opinion on that from the auditor."
The front half of annual reports should contain information on the company's ability to operate as a going concern. Rather than auditors signing off such as statement with the traditional "true and fair view", the audit opinion should instead be known as "balanced and reasonable, added Nisbet.
PwC head of assurance Richard Sexton defended the profession on a number of the points raised during the debate. He said that concerns of a lack of scepticism flagged up by the Audit Intelligence Unit were not necessarily accurate.

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