Professor Stella Fearnley’s research into audit committees has been published in a book titled Reaching Key Financial Reporting Decisions: How Directors and Auditors Interact (co-authored by Professors Vivien Beattie and Tony Hines).
Robert Hodgkinson – ICAEW Executive Director, Technical, said of the research: “This valuable new research found evidence that auditors challenge management frequently. There was no evidence to support the recent concerns about auditor scepticism or that auditors merely seek corroboration of management views.”
“Public discussion of corporate reporting and auditing is frustrated by the fact that directors and auditors debate issues and take decisions in private. The need to respect confidentiality means that policy makers and the public find insiders’ accounts of what happens bland and unconvincing. The resulting lack of public information is particularly dangerous at the present time when the financial crisis is prompting questions about whether new regulation is called for.”
“Through this book, Beattie, Fearnley and Hines present case studies that tell the reporting and auditing stories of nine companies based on interviews with their finance directors, audit committee chairs and lead auditors. This research is required reading for anybody who has ever wondered what really happens in an audit.”
You can buy Stella’s book on Amazon.