This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

FRC/ICAS Steering Committee publishes report into the future of audit

  • FRC Image
  • ICAS (Institute of Chartered Accountants of Scotland) (lt green) Image

29 Sep 2016

A joint Financial Reporting Council (FRC) and Institute of Chartered Accountants of Scotland (ICAS) Steering Committee has published a report (“the report”) calling for a debate on the future of audit and the auditor skills required to meet this vision.

The report is based upon the findings of two reports, commissioned in 2013, that were issued by the ICAS and FRC in April 2016.  These indicated that “it is doubtful whether the profession currently has the skill base necessary to deliver an audit beyond the traditional financial statement audit”.  In order to evolve the audit to deliver “a more holistic assessment of a company’s strategy, business model, risk profile, operations and performance”, the report identifies that the auditor skill set needs to improve in the following areas:

  • advanced business acumen skills;
  • technology and data interrogation skills; and
  • soft skills.

The report also identifies a number of barriers to change which the Steering Committee believe need to be overcome to meet the future vision for audit.  These are identified as:

  • the problems of recruiting and developing audit team members;
  • the extent to which standardisation may impair the development of judgement and innovation; and
  • the perception of audit as a career choice.

The Steering Committee hopes that the report will help to initiate a “constructive” debate” and highlights that “it is essential that the profession engages stakeholders in the debate if it is to deliver a high quality public interest audit for the future”. 

The press release and the report, Auditor Skills in Changing Business World, are available on the ICAS website.  An event,which will discuss the report, will be held on 23 November 2016.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.