Audit & Accounting

Bring back conservatism

Fair value measurement and other accounting standards seek to reflect the real world and ensure equity across generations of investors. However, in the process, they have eroded the age-old principle of conservatism and resulted in volatile and, in some cases, unrealistic financial statements.
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Auditor rotation – is it time?

Auditor rotation - is it time? Auditor rotation can enhance the independence and effectiveness of the audit. But it is also time-consuming and disruptive. Whether regulators mandate it or not, boards should establish a policy that recognises the systemic risk of retaining auditors indefinitely and the other mechanisms for achieving auditor independence and effectiveness.
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