Auditors Taking Less Risks In Wake Of Credit Crunch

Thu, 01 Apr 2010

The impact of the global downturn has caused auditors to become more cautious with their work in the last two years, according to new research by accountancy firm KPMG .

A survey by the firm found that two-thirds of company directors believe auditors are taking fewer risks as a result of the financial markets crisis.

The findings also suggested that this more vigilant approach has not affected the relationship between auditors and their clients, with 40 per cent of directors claiming it has improved since 2008, and a further 40 per cent saying it has remained the same.

Oliver Tant, head of audit at KPMG, said the change in attitude among auditors is a sign that "they have been doing their job ".

He added: "The balance an auditor is always trying to achieve is to objectively and independently scrutinise a company's financial data, while at the same time maintaining a constructive working relationship."

"It is encouraging to see these survey results, which would indicate that this is happening."

Earlier this week, the Association of Chartered Certified Accountants (ACCA) announced it is to team up with the International Auditing and Assurance Standards Board (IAASB) to investigate the quality of international audit standards.
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