KUALA LUMPUR, July 5 (Bernama) -- The Association of Chartered Certified Accountants (ACCA) has urged the accountancy profession to re-examine the role of audit, saying it provides values and assurances in promoting business confidence.
"We think the current consideration of the value of auditor reporting must form part of a wider holistic approach to disclosure, reporting and assurance, as efforts to enhance the value of corporate reporting much more than just revision of the existing auditor reporting standards.
"At ACCA, we believe assurance is not only about the auditor although they have to comply with stringent quality control standards, but all the stakeholders in the corporate reporting supply chain have to pull together to maximise audit quality," ACCA Malaysia country head Jennifer Lopez said in her speech today at the MIA-ACCA Forum 2013: The Value of Quality Audit.
Lopez said it is the right of stakeholders to ask tough questions on the role of audit in the global financial crisis, and the profession needs to respond accordingly.
And that is the responsibility not of one individual, but of everyone with a role to play, she added.
The association views that an auditor has a crucial role to play, such as improving access to finance, reducing the overall cost of capital and helping businesses to be more effective by identifying areas of risk, poor controls and inefficiencies.
The forum was jointly organised by the Malaysian Institute of Accountants (MIA).
Its vice president Johan Idris said to date, there has been little guidance available to help businesses understand the quality of audit service provided to them.
"This lack of information has compounded the 'audit expectation gap' in the business and investor communities.
"MIA and ACCA are committed to addressing this expectation gap by raising awareness of the benefits of audit and by educating stakeholders on the drivers of audit quality," he said.
Panellists included included Ernst & Young managing partner, Global Risk Management Infrastructure Sukanta Dutt; Celcom Axiata Bhd chief financial officer Chari TVT; and Audit Oversight Board executive chairman Nik Mohd Hasyudeen Yusoff.
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