NSW Audit Office - Submissions - 2002 - Submission to the Joint Committee of Public Accounts and Audit

9285.0101 Mr A Cunningham A359 Inquiry Secretary Joint Committee of Public Accounts and Audit Parliament House CANBERRA ACT 2600 31 May 2002 Dear Mr Cunningham Submission to the Joint Committee of Public Accounts and Audit Thank you for the opportunity of providing a submission to the Committee for its Review of Independent Auditing by Registered Company Auditors. Introduction In essence, the issuing of an audit opinion involves the auditor in providing an appropriate level of assurance or confidence to the reader of that opinion. In the first place, that confidence relates to the way in which the auditee has presented its financial report, and the strength of the internal controls and systems that lead to that report. However the reader of the opinion must also have confidence in the person or firm carrying out the audit. I believe that the standard of auditing in Australia is amongst the best in the world, and that there are no systemic failures in auditing. But confidence in the role of the auditor is a growing concern in Australia as it is elsewhere, and it is a concern that must be addressed. If there is a perception that the auditing profession lacks competence or lacks independence, then the level of confidence in audit will be diminished. It is not sufficient to argue that the perception is misplaced, and hence no action should be taken. That approach risks further damage to the standing of the audit ...