Newly appointed Institute of Chartered
Accountants Scotland (ICAS) president Sir David Tweedie
said the profession requires a “natural evolution not
revolution” and improvements to audit committee reporting
should be made.
Tweedie said the average audit engagement of a
FTSE 100 company of 48 years is “getting a bit cosy”.
“We need get audit committees to say they will
look at retendering every now and again and after a while, let’s
say 15-20 years, change the auditors or explain why not,” he said
in the International Accounting Bulletin webinar Secrets
of Success.
Tweedie believes audit committees need to
play a larger role and become more transparent in their
reporting to the shareholders and investors.
“Presently the audit committee report is
really about what I’m not responsible for and what management is
responsible for and that’s ok, but that could be in the appendix,”
he said.
“At the moment it’s just about ‘yes’ and ‘no’
and what you need is to know what where the major going concern
assumptions. I would like to see what were the critical issues and
estimates that matter to these accounts. And, I do think that will
come”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe former International Accounting Standards
Board (IASB) head also emphasised the importance of regulators
and auditors working closer together in order to better tell the
“full story of a business and reflect economic reality”.
“Lessons in all quarters are being learnt from
the global financial crisis. There is work to be done in restoring
confidence and trust in business and in the profession – including
preparers of financial statements and auditors. Increased
transparency and clearer communication will be pivotal to this,”
Tweedie said.
Tweedie, who played a pivotal role in
influencing global accounting standards, will start his new role on
20 April.
ICAS goals
Tweedie said one of his major goals as
ICAS president is to emphasise the importance of professional
ethics.
“We want to get the practitioner back to the
students and telling them war stories and what they are going to
need to look out for as they start to practice,” he said.
Tweedie said he wants to bring the profession
closer to young people from a deprived background.
“There are a lot of bright kids who don’t go
to university or get bewildered by it and it’s about how we get
them into the profession, how we mentor them and keep them going,”
he explained.
“We want to make sure bright kids, who just
can’t get on to the educational ladder, get on it.”
Tweedie also conveyed the importance of
defining the role of the auditor when it comes to small companies
where an auditor can also act as an advisor.
“As a small company you can’t afford an
accountant and a consultant and the auditor of small firms is in a
different position and in a way is a trusted business advisor.
There is no public interest involved in such a case and we need to
remind our CAs of that and do well for the economy,” he noted.
Tweedie succeeds Iain McLaren and is joined by
vice presidents Brendan Nelson, a non-executive director at Royal
Bank of Scotland and British Petroleum, and Jann Brown of Cairn
Energy.
