Fifteen years of reformation – what next?

Abstract

Purpose

This paper aims to look back from the point of view of a non‐executive director on the changes in the auditing profession in the last 15 years and to give reflections on the issues which presented the profession and the public today.

Design/methodology/approach

Reviews the last 15 years vis‐à‐vis changes in the auditing profession and considers matters with which auditors and public are faced today.

Findings

This paper highlights that the concept of having fundamental principles and codes is much more likely to gain support and be practical than having rules laid down in statute. People should “explain” more often than “comply” because it is in their business interest and in the interest of the public. Reward comes from taking risk and it is very important that we do not make UK plc less competitive than the world markets by becoming too risk averse.

Originality/value

The paper questions whether it is time to review the efficacy of the statutory audit. The pendulum has now swung and it is time to address whether it should swing any further or whether in fact it is a time for balance to be brought into the various systems and codes based on the experience of the last few years.

Citation

Percy, J.P.(I). (2007), "Fifteen years of reformation – what next?", Managerial Auditing Journal, Vol. 22 No. 2, pp. 226-235. https://doi.org/10.1108/02686900710718708