What Is the Future of Audit and Assurance? FEE Opens Discussion

Noémi Robert, Hilde Blomme | May 14, 2014 | 1

As part of its commitment to promoting a public debate on audit and assurance, the Federation of European Accountants (FEE) has published a discussion paper, the Future of Audit and Assurance. The paper lays out initial observations that could result in potential longer-term developments in audit, assurance, and other services. As the start of a journey, this paper examines some areas of development and poses questions.

Let us focus on the two main areas steering this debate:

Innovation Driven by Technology and Competence

IT developments and the increased complexity of our society and businesses should be seen as opportunities for auditors, but can very easily become threats. It will be essential for auditors to evolve and maintain professional knowledge and skillsets at the level required to respond to and keep up with these changes.

To this end, the appropriateness of the current education and training models, which are based on a number of historic disciplines, are increasingly being questioned as to whether they continue to build and develop the right competencies for the future.

This begs questions such as: How will you be affected by IT innovation in the coming years? For which types of services? How can we develop education to make it fit for purpose in the future? How can we ensure that we create a new type of auditor that can adapt and react to the current and future business challenges?

Alternatives to Better Meet Stakeholders’ Needs

There is probably some truth in the assertion that the profession is too focused on statutory audit, which operates within a demanding regulatory and legislative regime that might hold back innovation. We need to make use of our expertise and unique skillsets in developing other solutions that will better meet stakeholders’ needs.

This begs questions such as: How should practitioners’ adapt their range of service offerings to meet the current and future needs of SMEs? What about the large businesses? Will the market demand assurance on new types of reporting—CSR (Corporate Social Responsibility), ESG (Environmental Social Governance), or IR (Integrated Reporting)—as they become more widespread? Why or why not? How can the profession help public sector entities achieve high-quality financial reporting?

 Be Part of the Journey and Join the Conversation

FEE is committed to initiating and encouraging reflection and discussion for developing a vision for the future. We invite you to consult, share, and respond to this discussion paper by emailing comments to FEE by June 30, 2014. Comments may also be submitted via an online survey, which outlines all of the questions posed in the discussion paper. These will be analyzed and used by FEE as a basis for deciding next steps.

What does the future hold? Join the Conversation below. 

 

Noémi Robert

Audit & Assurance Manager, Accountancy Europe

Noémi Robert is a Senior Manager at Accountancy Europe and in charge of the audit and assurance work streams. In her role, she focuses on technical aspects of the professional work of Accountancy Europe dedicated to audit and assurance, as well as professional ethics. See more by Noémi Robert

Hilde Blomme

Deputy CEO, Accountancy Europe

Hilde Blomme is Reviseur d’Entreprises (Belgium), MBA, FCCA, CPA. She joined Accountancy Europe in 2003 as Director of Practice Regulation. In 2011, she became Deputy Chief Executive. In her role, she focuses on supporting and advising Accountancy Europe's governing bodies related to public policy and technical matters, co-developing strategy with a focus on public policy and regulatory matters, representing Accountancy Europe on professional and technical matters and developing staff. See more by Hilde Blomme

 

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Alpaslan Menevse May 21, 2014

I would like to refer to famous article with the title "The role of Internal Auditor in Enterprise Risk Management" I think Internal and external Audit functions, audit reports, and the stakeholders of these reports have to be reviewed, revised and redefined from the scratch. It may be much more serious work if different reports are issued for different stakeholders. https://dl.dropboxusercontent.com/u/84346506/TheFutureRoleofInternalAuditinEnterprise_RiskManagement.pdf

 

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