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This chapter sets out some of the key challenges likely to impact on audit in the coming years and discusses the steps audit firms may need to undertake to deal with such issues. This chapter will primarily focus upon the need to enhance audit quality as an overarching principle. It will go on to discuss the evolving skillsets required of auditors in the light of changing technologies. It will also discuss the effect on audit of the emergence of narrative reporting. Finally, the issues affecting the audit standards are discussed in a consideration of whether these remain fit for purpose given the changing landscape. The chapter concludes by discussing the delicate balance needed between independence, innovation and regulation.
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ACCA. 2015. “The Challenges of Assuring Integrated Reports: Views from the South African Auditing Community.” http://www.accaglobal.com/content/dam/ACCA_Global/Technical/integrate/ea-south-africa-IR-assurance.pdf.
ACCA. 2017. “The Future of Audit.” http://www.accaglobal.com/content/dam/ACCA_Global/Technical/audit/ea-future-of-audit.pdf.
BBC. 2011. “Nick Leeson on Newsnight with Jeremy Paxman.” https://www.youtube.com/watch?v=lsZ5RlBail4.
Fisher, Liz. 2018. “Pathology of Reporting.” AB Magazine.
FRC. 2016a. “Audit Quality Review.” https://www.frc.org.uk/auditors/audit-quality-review.
FRC. 2016b. “Ethical Standard (2016) Integrity, Objectivity and Independence.” https://www.frc.org.uk/getattachment/0bd6ee4e-075c-4b55-a4ad-b8e5037b56c6/Revised-Ethical-Standard-UK-June-2016.pdf.
FRC. 2017a. “25th Anniversary of the UK Corporate Governance Code.” https://www.frc.org.uk/directors/corporate-governance-and-stewardship/uk-corporate-governance-code/25th-anniversary-of-the-uk-corporate-governance-co.
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FRC. 2017c. “Independent Review of the Financial Reporting Council’s Enforcement Procedures Sanctions Review Panel Report.”
FRC. 2017d. “Proposed Revisions to the UK Corporate Governance Code Appendix C—Summary of Changes from 2016 UK Corporate Governance Code.”
Gambier, Andrew, and Nick Jeffrey. 2016. “The Future of Audit.” https://www.ifac.org/global-knowledge-gateway/audit-assurance/discussion/future-audit.
IAASB. 2016. “Supporting Credibility and Trust in Emerging Forms of External Reporting: Ten Key Challenges for Assurance Engagements.” https://www.ifac.org/system/files/publications/files/IAASB-Discussion-Paper-Integrated-Reporting_0.pdf.
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ICAEW. 2018. “Audit Quality Forum (AQF).” https://www.icaew.com/technical/audit-and-assurance/audit-quality-forum-aqf.
ICAS. 2016a. “Audit Exemption: What Are the New Rules?” https://www.icas.com/technical-resources/audit-exemption-update-what-are-the-new-rules.
ICAS. 2016b. “Auditor Skills in a Changing Business World.” https://www.icas.com/__data/assets/pdf_file/0010/259516/Auditor-skills-ICAS-FRC-20.9.16-Final.pdf.
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Schilder, Arnold. 2017. “The Future of Audit: Technology.” https://www.icaew.com/en/technical/audit-and-assurance/faculty/the-future-of-audit/the-future-of-audit-technology.
Schilder, Arnold, and Kristian Koktvedgaard. 2017. “Professional Scepticism: Inside the Mind of the Auditor.” http://www.accaglobal.com/content/dam/ACCA_Global/Technical/eventinvitations/Professional-scepticism-17-October-2017-REPORT.pdf.
Shilts, Josh. 2017. “A Framework for Continuous Auditing: Why Companies Don’t Need to Spend Big Money.” https://www.journalofaccountancy.com/issues/2017/mar/continuous-auditing.html.
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