The Financial Reporting Council and the Auditing and Assurance Standards Board have published the results of a survey of Audit Committee Chairs, which covered 91 of the ASX top 300 listed companies.
The survey copied a UK survey by the UK Financial Reporting Council, to enable a comparison, and is the first time such a survey has been conducted in Australia.
The survey showed a general high level of satisfaction with auditors by Audit Committee Chairs.
Some interesting points to note:
- HLB Australasia’s listed clients are not in the top 300, and therefore our clients might have a different perspective, and different requirements of us as their auditor.
- A strong message is that the Audit Committee does not want the auditor will will will to be too close to management.
- They want the auditor to challenge management’s assessments, and to communicate to the audit committee the auditor’s views on management’s estimates, including communicating alternative views.
- Audit Committee Chairs auditors to be more innovative, in particular using technology, and data analytics to identify potential issues and enable timely focus.