In response to the issuing of the Brydon report, Business Secretary Andrea Leadsom said “The quality and reliability of audit has come under the spotlight on too many occasions, and it’s essential that we rebuild trust and confidence in this vital business oversight. Sir Donald’s review, as well as work carried out by Sir John Kingman and the CMA, will help inform our reform of audit.”

With reference to one, or more, cases of corporate collapse where the auditor’s role has been called in to question, such as Carillion, Thomas Cook and Patisserie Valerie, discuss the extent to which you think the consequences of these collapses were the result of a lack of audit quality . Give reasons for your answer.

Evaluate the extent to which proposed reforms to audit, such as those suggested in the Brydon Report, will help to address concerns regarding audit quality and reliability.

Answer rating: 100% (QA)

a it is not the auditors responsibility to determine whether or not an entity can prepare its financial statements using the going concern basis of ac... View the full answer