Accounting watchdogs find ‘serious problems’ at 40% of audits

Posted 3/12/2018

Fresh concerns have been raised about audit quality after the International Forum of Independent Audit Regulators found serious errors in 40% of the 918 audits it inspected last year. The IFIAR had challenged global audit networks to bring down their error rate by at least 25% over a four-year period; at the half-way point of the period, 30% of publicly-traded entities had at least one audit deficiency finding, almost at the targeted 29%. The most common issue identified by these regulators was a failure among auditors to “assess the reasonableness of assumptions”. The second biggest problem was a failure among auditors to “sufficiently test the accuracy and completeness of data or reports produced by management”.

Financial Times Compliance Week