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Audit quality

Yesterday

l-r  Peter Lalor and Jason Preston

The fastest-growing firms have one thing in common: AI

BlueRock’s Peter Lalor says the firm is using generative AI across the firm, while McGrathNicol’s Jason Preston is using the machine learning to identify patterns that humans would overlook.

  • Updated
  • Edmund Tadros

This Month

Big four

What the inquiry into the structure of the big four firms recommended

A summary of the key recommendations from the joint parliamentary inquiry into the structure of the big four consulting firms and what they mean for the sector.

  • Updated
  • Edmund Tadros

October

Limitations to generative AI technology means professional judgment is more important than ever, says a new playbook created by accounting bodies.

AI comes with risk for auditors: report

Artificial intelligence can help auditors in the search for trends and anomalies – but its limitations mean professional judgment is more important than ever.

  • Edmund Tadros

September

Deakin University’s Burwood campus.

Accounting body’s plan a ticking time bomb for the profession

Chartered Accountants ANZ’s plan to educate school leavers without a university degree will hurt the sector, say two Deakin University academics.

  • Anne Wyatt and Peter Carey
PwC China is reeling from financial sanctions from the Chinese government.

PwC China stops work on $210m campus as Evergrande crisis mounts

A lavish training institute on the tropical island of Hainan is under review as the firm reels from fallout from its audits of the failed property developer.

  • Eleanor Olcott, Stephen Foley and Chan Ho-him
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PwC in Shanghai faces a substantial fine and suspension over its failings with Evergrande.

PwC banned from China for six months and fined record $92m

Chinese authorities imposed a huge fine on PwC and suspended the accounting firm from operating over failures in auditing the collapse of real estate giant Evergrande.

  • Trista Xinyi Luo

August

People think our job is boring: accountants lament image problem

Almost half of surveyed accountants and bookkeepers believe their industry has an image problem, and most say the sector is seen as boring.

  • Edmund Tadros
EY planned to separate its audit and consulting divisions globally but has dumped the proposal.

Big four consulting arms need regulation: ethics board

The ethics body for the accounting industry also wants ASIC to reverse its decision to wind back its audit quality inspection program.

  • Edmund Tadros
EY building.

EY fined $571,000 over audit of group linked to Russian oligarch

The UK accounting regulator hit the accounting firm with the penalty for breaching a fee cap relating to its consulting work for Russian steel company Evraz.

  • Simon Foy

July

Janet Truncale has ruled out splitting EY into two separate companies.

New EY chief rules out reviving plan to split firm in two

New chief executive Janet Truncale has unveiled a plan to slim down the firm’s central bureaucracy.

  • Stephen Foley and Simon Foy

June

Telstra has hired Deloitte to replace longstanding auditor EY.

Telstra hires Deloitte to audit books, replacing EY after 25 years

The telecoms giant said changing auditors was “good governance” and wants to use Deloitte’s digital technology to reduce costs.

  • Jenny Wiggins and Edmund Tadros
Chartered Accountants ANZ chief executive Ainslie van Onselen.

Government urged to add accountants, auditors to fast-track visa list

Eleven accounting, auditing and data-related roles need to be added to a new list of occupations eligible for fast-tracked migrant visas due to ongoing labour shortages, say two major professional bodies.

  • Edmund Tadros

May

EY gave going-concern warnings for just one in five British companies it audited in the year before they failed, the lowest out of the big four.

Auditors failed to raise alarm before 75pc of UK corporate collapses

Audit firms failed to raise the alarm before three-quarters of big UK corporate collapses since 2010, raising concerns they are failing to perform one of their core functions.

  • Simon Foy
The Financial Review understands Macquarie decided to continue with PwC given its long-standing relationship with the company, and its familiarity with its complex global structure.

PwC survives Macquarie audit review

PwC has audited the Millionaires’ Factory since 1993, and it is one of its most lucrative ASX contracts.

  • Lucas Baird
The inquiry particularly focused on the audit quality and operations of the big four consulting firms – Deloitte, EY, KPMG and PwC.

Treasury questions the very nature of the big four consulting firms

Get ready for war as they fight back against suggestions they are too big, incapable of governing themselves and have compromised auditing roles.

  • Edmund Tadros
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April

Kristin Stubbins, former PwC Australia acting CEO, during a hearing with the Parliamentary Joint Committee on Corporations and Financial Services, at Parliament House in Canberra on March 5.

Former PwC chief executive Kristin Stubbins starts new firm

The advisory giant’s former boss, and its most senior audit partner, is expected to launch the new business next month.

  • Aaron Weinman
Doug Niven had some strong feedback for his former employer ASIC.

‘Risk of regulatory capture’: ASIC hits back at audit criticisms

The watchdog is facing calls to regulate financial reports, sustainability reporting and audit quality.

  • Ronald Mizen

ASIC’s ex-chief accountant slams its big four audit reprieve

Doug Niven says ASIC’s move to slash audit quality oversight could be viewed as caving in to firms angry about negative publicity.

  • Ronald Mizen
ASIC’s remit is too large: But right sizing its jurisdiction will require careful analysis.

ASIC smooths the way for UK auditors to work in Australia

The Australian corporate regulator and the UK’s audit regulator will allow statutory auditors to have their qualification more easily recognised in either jurisdiction.

  • Edmund Tadros
Treasurer Dr Jim Chalmers has porposed new financial reporting rules.

Large companies must file climate reports from 2025

Large companies have been given a six-month reprieve on including climate-related information in their financial reports.

  • Edmund Tadros

Original URL: https://www.afr.com/topic/audit-quality-1mq5