Reaching Key Financial Reporting Decisions (PDF)

The regulatory framework for financial reporting, auditing and
governance has changed radically in recent years, as a result of
problems identified from the Enron scandal and more recently from
the drive to implement global standards. In a key regulatory
change, a company audit committee is now expected to play a
significant role in agreeing the contents of the financial
statements and overseeing the activities of the auditors. Finance
Directors, Audit Committee Chairs and Audit Engagement Partners are
required to discuss and negotiate financial reporting and auditing
issues, a significant process leading to the agreement of the
published numbers and disclosures, and to the issuing of the
auditor's report which accompanies them, but which is entirely
unobservable by third parties.

Reaching Key Financial Reporting Decisions: How Directors and
Auditors Interact is a fascinating, behind-the-scenes
examination of this closed process. The authors draw on the results
of face to face interviews, and an extensive survey of finance
directors, audit committee chairs and audit partners, and present
nine company case studies highlighting the process of discussion
and negotiation and the methods by which the agreed financial
reporting outcome was reached. Detailed analysis of the case
studies:

* Allows those involved in the process to benchmark their
behaviours against those of others

* Enables a comparison between the previous and current
regulatory environments to see what has changed, and sheds light on
the sorts of behaviours the current regulatory framework
encourages

* Evaluates the effectiveness of the changed regulatory regime,
providing evidence relevant to current policy debates concerning
the value of audit, IFRS and the relative merit of rules-based
versus principles-based accounting standards in relation to
professional judgement and compliance

The unprecedented access and unique insights offered by this
book make it invaluable for audit firm staff and partners, audit
committee chairs and company directors involved in agreeing the
published financial statements, as well as those who have an
interest in the financial statements, but do not have access to the
negotiation process.