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Problems and difficulties currently experienced by auditing firms, their long-term sustainability and their social responsibility. David Fisher April 2007. Why do we need a strong profession? How have we changed? What are the main issues? How do we stay viable?. - PowerPoint PPT Presentation
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Problems and difficulties currently experienced by auditing firms, their long-term sustainability and their social responsibility.
David FisherApril 2007
© Grant Thornton International. All rights reserved.
Why do we need a strong profession?
How have we changed?
What are the main issues?
How do we stay viable?
© Grant Thornton International. All rights reserved.
Why is the profession important?
Main market
1622 companies (330 overseas)
£4,307 billion market capitalisation
AIM
1634 companies (306 overseas)
£90 billion market capitalisation
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The changes
Cooper Bros
Deloitte PWC
Price Waterhouse
Touche Ross Deloitte
Arthur Andersen
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Why the changes
Commercial• clients.
Economic• IT• professional indemnity• space constraints.
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The major issues
• disproportionate legislation
• private litigation
• talent.
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Disproportionate legislation
• measured and proportionate
• companies criminally liable for their staff
• systemic failure at firm level.
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Private litigation
• 69 claims outstanding• 23 between US$10 to 30 million• 11 between US$200 to US$1 billion• 5 in excess of US$1 billion.
Less insurance available
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Retaining talent
• 67% say less attractive than 2 years ago
• 20/20 hindsight
• valued members of the community.
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How do we stay viable?
• respond to regulators
• respond to business community and our staff.
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The regulators
• a global protocol
• continuous reviews
• multi-disciplinary partnerships.
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The wider community
• it's not just business
• transparency
• corporate responsibility.
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Corporate responsibility
• environment
• workplace (our people)
• community
• marketplace (our clients and suppliers).
