This publication recommends six actions to improve the corporate reporting ecosystem. All key parties, and their interactions, will need to evolve to more effectively mitigate the risks of corporate fraud and failures.
Robust corporate governance with stronger internal controls could significantly improve the quality of financial reporting. To achieve this, different parties in the ecosystem need to act: EU and national legislators, supervisors, and financial reporting & auditing standard setters.
One of our proposals is a mandatory public statement by companies on the effectiveness of internal controls over financial reporting which will help ensure that management and board are discharging their responsibilities. Having independent assurance by the statutory auditor on these controls would further enhance their reliability.