The Future of Audit

"The audit profession is at a crossroads. As the role of the auditor comes increasingly under the spotlight following recent global financial turbulence, ICAEW* believes that it is vital that the accountancy profession re-examines the role of audit and assurance and comes up with constructive, practical ways which both can improve and continue to benefit businesses, the economy and society in the 21st century."

*ICAEW -Institute of Chartered Accountants in England and Wales

Required:

Critically evaluate the above statement. You may wish to consider issues such as:

• Do you agree with the viewpoint expressed? (4 marks)

• Give FIVE (5) examples of recent suggestions that have been made to improve the confidence of 'businesses, the economy and society' in auditors.

• What should the role of the accountancy profession be in relation to audit reform? What are the tensions around this?

Is the problem just one of audit failure?