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Challenges Facing Audit Firms: Sustainability and Responsibility

Explore the current problems and long-term sustainability of auditing firms, including market trends, regulatory changes, and talent retention. Learn how firms navigate economic, legal, and social challenges to stay viable and socially responsible in a evolving industry.

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Challenges Facing Audit Firms: Sustainability and Responsibility

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  1. Problems and difficulties currently experienced by auditing firms, their long-term sustainability and their social responsibility.David FisherApril 2007

  2. Why do we need a strong profession? How have we changed? What are the main issues? How do we stay viable?

  3. 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

  4. The changes Cooper Bros Deloitte PWC Price Waterhouse Touche Ross Deloitte Arthur Andersen

  5. Why the changes Commercial • clients. Economic • IT • professional indemnity • space constraints.

  6. The major issues • disproportionate legislation • private litigation • talent.

  7. Disproportionate legislation • measured and proportionate • companies criminally liable for their staff • systemic failure at firm level.

  8. 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

  9. Retaining talent • 67% say less attractive than 2 years ago • 20/20 hindsight • valued members of the community.

  10. How do we stay viable? • respond to regulators • respond to business community and our staff.

  11. The regulators • a global protocol • continuous reviews • multi-disciplinary partnerships.

  12. The wider community • it's not just business • transparency • corporate responsibility.

  13. Corporate responsibility • environment • workplace (our people) • community • marketplace (our clients and suppliers).

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