Group Report PresentationWai Kwan Lam Vincent (26366029)Hang Yang (26353350)
Table of Content 1. Issues investigated in this research2. Introductiona.Why are the issues important?b. Background3. Key Findings
Issue investigated in this research1. Comparing the difference of the information disclosed by leading Australian audit firms in their first-time audit firm transparency reports 2. Discovering future potential research opportunities on audit firms using transparency report disclosures
Why are the issues important?1. Improvement in Audit Quality2. Modification and enhancement in audit firms’ own internal governance3. Impact on choice of audit firm
Before moving forward…Background
Before transparency reporting1. The “Black box” approacha.Lack of transparency regarding to audit quality assessmentb.Information Asymmetry2. Incidents a.High-profile audit firm failures (e.g. Demise of Arthur Andersen)b.Poor performance of auditors during the global financial crisis
Transparency Reporting in other jurisdiction1. The European Union (EU) pioneered requirements for audit firm transparency reporting.2. The Japanese CPAalso introduced a public transparency reporting requirement for audit firms in Japan.
Transparency Reporting in Australia1. The Australian Corporations Legislation amendment actintroduced in 2012a.Requires transparency reports to be prepared by those Australian audit firms which have provided audit services to ten or more “significant entities”.2. The 21 Australian audit firms were entitled for issuing transparency reports in financial year 2013.