In the regulators we work with, we are seeing increasing interest in using audit as a tool to reduce red tape. Although this may seem counter-intuitive to some, there is a good reason.
Audit builds and enhances trust – trust between entities and their stakeholders, including regulators.
Audit answer the important question of ‘Is it right?’ – whether that be on financial or non-financial data, performance information or the compliance status of an entity or function.
Audit is viewed as a key control for stakeholders, especially owners/members and boards, but also regulators. By relying on periodic audited information, regulators and other stakeholders can focus on outcomes rather than tight compliance management with ongoing detailed reporting.
Balanced with this, and to meet evolving community expectations, regulators’ demand for assurance over a wider range of information, including governance practices, internal controls and KPIs, is likely to continue.