The regulator’s shift from a collaborative to a coercive approach may be leading to over-reliance on checklists at the risk of taking into account the individual needs of clients, according to the working paper by University of Melbourne’s Carlin Dowling, University of Florida’s W. Robert Knechel and Monash University’s Robyn Moroney. This then results in the commoditisation of audits, which puts pressure on fees and the level of investment in the audit process.
Read the full article at the Australian Financial Review.