The Institute’s letter to the editor, published in the Australian Financial Review on Wednesday, 3 June 2009, clarified the importance and role of the external audit in light of the recent corporate collapses. 
 
The letter’s aim was to provide clarification and understanding as to the role of the external audit, amid recent articles in the media that displayed a fundamental lack of understanding. 
 
Lee White, General Manager of Leadership and Quality at the Institute and author of the letter said, ‘Some see audit as a guarantee to prevent poor management behaviour, bad business decisions or ultimately corporate failure. It is none of these. An audit enhances the accountability of corporate stewardship to its shareholders…a corporate failure does not equate to audit failure.’ 
 
The letter to the editor represents the start of a wider campaign on the value of audit, where the Institute will lead a market-based forward-looking agenda on ensuring the role of the external audit is well understood and valued.  
 
The Institute has recently published guidance for preparers, audit committees and auditors on the key challenges facing them this financial year-end. The guidance focuses on fair value, asset impairment and going concern. 
 
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Relevant links:

• The Institute: Letter to the editor– ICAA audit quality hits targets
• The Institute: Essential guidance for the 2009 financial year end
• The Institute: Essential guidance for the 2009 financial year end – media release