How audit is creating a ripple effect that is felt around the world

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5 minute read 23 Aug 2018
By

Felice Persico

EY Global Assurance Vice Chair

Assurance leader. Focused on the audit meeting the changing needs of businesses and investors. Sees the transformative possibilities of technology.

5 minute read 23 Aug 2018

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A quality audit can bring confidence to capital markets and investors. It improves transparency, provides new perspectives and reveals insights.

A quality audit creates a ripple effect that can be felt far beyond the business being audited. It can help to bring electricity to a Philippine mining village, support an online business to create jobs and rejuvenate a city in China, or even contribute to making medicine more readily available to those who need it most in Africa. Whatever the specific outcome, a quality audit is both an art and a science that provides confidence, transparency and perspective to the working world. Every audit should start with the question: “How can this audit help to build a better working world?”

Can an audit support innovations that help local businesses grow?

An audit helped generate insights and establish robust internal financial controls that supported an ambitious Chinese entrepreneur in evolving his business from an internet payment company to a fast-growing online bank. Able to respond to changing market dynamics as a result of the audit, the company identified an opportunity to help small rural Chinese businesses grow by trading over the internet. Today, this innovative company has made online trading accessible to millions, stimulated local economies and helped create millions of jobs.

Can an audit help communities thrive?

An audit informed by deep industry experience enabled a Philippine mining company to provide shareholders with the confidence they needed to support investment in new rural mining projects. Those investments helped to improve the living standards of the company’s workers and allowed rural communities to connect with schools and hospitals. It also helped the local community establish pastoral farming thanks to investment in local infrastructure, and helped a local government raise revenues to provide better community services for its citizens.

Can an audit breathe life into urban areas?

The insights identified from an audit meant an international software company could proceed with its IPO as planned. Uncovering an unforeseen risk, the company was able to take immediate remedial action before its IPO. With help from its auditors, the company was able to provide potential investors with an accurate picture of its financial position and successfully generate the capital investment it needed to expand. As a result of its successful IPO, the company set up its international headquarters in a US city, creating jobs and attracting talent to boost the local economy and play a role in the rejuvenation the city.

The questions asked during a quality audit, the knowledge and sector experience auditors bring, combined with data analytics help to provide confidence, transparency and new perspectives that have far-reaching impacts. So, an audit really can create a ripple effect that can be felt around the world.

Summary

Whatever the specific outcome, a quality audit is both an art and a science that provides confidence, transparency and perspective to the working world. Every audit should start with the question: “How can this audit help to build a better working world?”

About this article

By

Felice Persico

EY Global Assurance Vice Chair

Assurance leader. Focused on the audit meeting the changing needs of businesses and investors. Sees the transformative possibilities of technology.