This report delves into the complexities of the auditing profession, focusing on the issues surrounding the 'Big Four' accounting firms and the quality of their audit work, particularly in the Australian context. It examines the historical evolution of auditing, from its conventional methods to modern complexities, including the impact of non-audit services, major accounting scandals like Enron and WorldCom, and the challenges posed by increasing transaction volumes and the influence of top management. The report discusses the consequences of audit failures, regulatory attempts to improve audit quality, and the need for reform, including a potential royal commission. It also covers the opportunities and challenges for the Australian auditing profession in the 21st century, including the recent regulatory attempts to improve audit quality. The report concludes with recommendations to address the challenges and improve the efficiency and independence of the auditing process, advocating for greater transparency and accountability within the industry.
![[object Object]](/_next/static/media/star-bottom.7253800d.svg)
