Since 2014, Accountancy Europe has explored the Future of Audit and Assurance in events, publications, opinion pieces and consultation responses. We started this international stakeholders’ debate to stimulate innovation in statutory audit and explore other assurance services to meet stakeholders’ needs. Find out more on our work and in the interactive overview (click the visual!) below.

Statutory audit

IT and innovation provide endless possibilities for statutory auditors to better serve their clients and improve audit quality.  Even though technology can automate audit procedures, people are crucial to interpret data, provide ethical judgement and strategic advice.

1. Key audit matters (KAMs): Reporting on KAMs opens the way for more transparent and meaningful audits, which benefits users and stakeholders at large. We analysed how EU banks reported KAMs in 2018 and 2019.
2. Data analytics applies technology to better use companies’ data to enhance audit quality. This is a game changer in areas such as internal controls, predictive data analytics, fraud detection and anti-fraud procedures.
3. Audit Quality Indicators (AQIs): How to define and measure audit quality is an ongoing debate. We have explored how nine bodies world-wide have dealt with this, by listing their AQI initiatives.
4. Fighting financial crime: Society expects auditors to play an important role in fighting financial crime, check our FAQ on what auditors can do.
5. SME: adapting audit services to clients’ needs: Auditing small, or non-complex, entities requires professional judgement and proportionately applying standards. Check our work on how SME audit evolves in Europe and how we propose simplified standards.

Other assurance services

Statutory audit operates within a demanding regulatory and legislative regime that can limit innovation. Auditors need to be able to adapt their expertise and unique skill-sets in developing other solutions that will better meet stakeholders’ needs. Therefore, we have explored 4 alternative services:

1. Non-financial information assurance: Stakeholders ask for assurance on companies’ non-financial information. Check our work on non-financial assurance practices across Europe .
2. Green bonds’ assurance: Auditors add credibility to the green bond market by providing an external second opinion on the environmental criteria and third-party assurance on performance or internal processes.
3. Support in tax controls and assurance: External assurance providers can verify how an enterprise’s control systems over its tax function are designed and implemented. This can help ensure the timely and accurate production of the tax return.
4. Public sector assurance:  Our profession can address the growing demand for assurance on the information that public sector management relies on for decision-making.