Raising the external audit bar
Cheah Chor Sooi | 01 Sep 2017 00:30
It takes two to tango. External auditors are unable to independently validate the reliability of financial statements without the cooperation of their clients.

Given that the original information comes from the company with auditors merely fulfilling the role of gatekeepers, it makes valid sense for the management, board members and audit committee of a listed company to play their roles effectively in their respective financial reporting functions.

This is because auditors rely on their representations to gain an understanding of the business model.

This will drive auditors’ focus to areas which are of significance in terms of audit risks and to be subsequently disclosed in the auditor’s report.