Our contribution to the public debate
The continuing aftershocks of the global financial crisis highlight the importance of public confidence in the capital markets. We are acutely aware of our important role in promoting transparency and supporting investor confidence and economic growth. This is one way in which we are working to build a better working world.
Clients, regulators and our stakeholders count on us to deliver quality and excellence in everything we do. Regular dialogue with our stakeholders is a priority for us and what we hear helps inform our views and actions.
Below you will find our viewpoints on some of the most topical issues relating to auditing, financial reporting and the capital markets.
Our latest commentary
Mandatory firm rotation has received increasing attention from policy makers in recent years as a potential way to bolster auditor independence and increase professional skepticism. This Point of view explains why Ernst & Young opposes mandatory firm rotation and supports other means of strengthening auditor independence and improving audit quality.
Policy makers in some jurisdictions are considering whether to strengthen existing restrictions on auditors providing non-audit services to audit clients. Ernst & Young believes that with the right safeguards in place, auditors can maintain their independence and enhance audit quality while providing non-audit services. This Point of view discusses these issues.
Our latest Point of view reviews ongoing public policy developments affecting the accounting profession and our business and considers the outlook for 2013 and beyond. It provides a snapshot of the status of some of the key policy reforms under consideration, and then reiterates Ernst & Young’s views on these important issues.
To promote investor confidence in auditor independence and objectivity, we believe there should be greater transparency of the audit committee’s auditor oversight process so that shareholders have the information they need to properly evaluate an audit committee’s decision to retain or change the auditor. Our latest Point of view explains our proposal for shareholders to receive a report from the audit committee on a periodic basis detailing its oversight of the auditor and the audit process.
We strongly support meaningful change to increase the usefulness and informational value of the auditor’s report. This Point of view summarizes our perspectives on auditor reporting, as set forth in our recent response to a consultation by the International Auditing and Assurance Standards Board.
Ernst & Young has submitted a response to the International Auditing and Assurance Standards Board's Invitation to Comment that made suggested improvements to the auditor's report.
This Point of view brings you up-to-date on current public policy developments that will be of interest to you, our clients and other stakeholders. These include: the European Commission's pending proposals on audit policy; the UK Competition Commission inquiry into the UK audit market; the UK FRC's proposals on mandatory retendering; and the US PCAOB concept release on independence, objectivity, and professional skepticism.
The UK Financial Reporting Council issued a consultation in April 2012 on revisions to its Corporate Governance Code and Guidance on Audit Committees. Ernst & Young has submitted the below response relating to the audit tendering proposals in the consultation.
This Ernst & Young reports provides our perspective on the European Commission's audit proposals following their official publication on 30 November.
This document provides a brief overview of the EU legislative process and its institutions in the context of the Commission's Green Paper on audit policy.
As policy-makers move forward post-crisis, many have proposed reforms to corporate governance, financial reporting and the role of audits and the audit profession. The European Commission has developed a set of draft proposals in response to its Green Paper on Audit Policy and in the US, the Public Company Accounting Oversight Board is seeking comment on its concept release on measures to enhance auditor independence, objectivity and professional skepticism. This report provides a high-level perspective, identifying which measures we support and which we oppose.
The 2011 summit was dominated by uncertainty around sovereign debt risk and the future of the Eurozone. In the midst of an agenda focused primarily on macroeconomic concerns and fiscal reform, the G20 leaders struggled to make progress and stay united on financial regulatory reform and a broader growth agenda. Learn more about the summit's key actions.
This Overview provides an update on recent developments affecting auditors and audit committees, including the European Commission Green Papers on audit policy and corporate governance, House of Lords report, OFT statement on competition, and activity by the IAASB and US PCAOB.
The House of Lords published its final report on market concentration in the UK audit market and the auditing of banks. The report makes recommendations to the UK Government and could influence policy making around the world as the European Commission and national regulators also consider measures to reform auditing.
The Green Paper raises many questions about the role of the auditor, the structure and regulation of the audit profession, and other core elements of the audit process. Our publication outlines our perspective on these issues, which we discuss more fully in our Comment Letter.