The Association of Chartered Certified Accountants (ACCA) has welcomed the most recent consultation on strengthening the quality of corporate reporting and its enforcement.
The consultation aims to ensure high quality and reliable corporate reporting for healthy financial markets, business investment and economic growth, as well as cross-border investments and the development of the capital markets union (CMU).
ACCA said it will now “carefully” assess the questions of the consultation and look forward to contributing to the public debate.
According to the firm, it believes that the factors that contribute to a quality audit include: thoroughness and timeliness; independence and closeness; standardisation and autonomy; delivering a holistic opinion and responding to fraud; being both backward-looking and forward-looking, and supporting both transparency and confidentiality.
ACCA also said the “right framework” will enable the accountancy profession to play its “essential role” in driving positive business change and supporting economies and organisations across the world to build back better.
Mike Suffield, director of Professional Insights at ACCA, said: “We welcome the end-goal of the consultation, which is improving audit quality – an issue that remains vital to public confidence in audit. Concerns about audit quality persist, both about those audits that fall below satisfactory standards and about the pace of improvement.
“An open and honest debate both at global and EU level is therefore needed about how audit quality can be maximised and driven.”