Analyse og evaluering af det danske Revisortilsyns præstation og samfundsmæssige nytte

Anette Teglgaard Stouby

Student thesis: Master thesis


Executive summary: This thesis seeks to identify the legislator’s purpose of introducing the Danish Supervisory Authority on Auditing. Which task is it set to perform, and how should it be performed? It is also examined how the Supervisory Authority on Auditing performs its quality control. Can the Authority exert the expected influence on the profession and deliver the awaited benefits based on this control? Or will flawed and sloppy audit work continue to feature in newspaper headlines for the next many years? The object of the Supervisory Authority on Auditing is partly to comply with requirements from the EU which, via directives, has required that a public supervision of the audit profession be set up. The primary objective is, however, to ensure consistently high quality in audit services in order to increase confidence in auditors' work. This is achieved by subjecting all approved audit firms to efficient public control. The control is to ensure that all audit firms have in place a quality assurance system that is used in general and applied to single audit engagements. The quality control is generally structured so as to offer a satisfactory and efficient control. Aside from being qualified and independent, the existing resources are sufficient to perform the control in an efficient way. The control is largely performed in accordance with the expectations. However, the Supervisory Authority on Auditing has not been able to comply with the requirement on making consistent controls as some supervisors are too thorough as compared to what they should be. Moreover, the work programs used have not been prepared efficiently, posing a risk that the controls are too meticulous as these programs are very extensive. As both circumstances result in controls being too thorough, an increased financial burden is placed on the affected audit firms. The control, however, is concentrated on a number of relevant areas, and focus is generally on actual errors. Formal errors, however, are also reported as they are detected. The annual reports were not presented in the fairest way possible, which may raise doubt about the point of having set up the Supervisory Authority on Auditing. During the period in which the Supervisory Authority on Auditing has existed, however, the number of audit firms without a quality assurance system has dropped massively, and the quality of audit firms’ work has gone up. Thus, the introduction of the Danish Supervisory Authority on Auditing generally matches the expectations set. The confidence in auditors has, however, declined in that same period, which may be attributed to the heavy focus on the number of errors made rather than the large number of audit firms which in actual fact pass the control without comments. Accordingly, the controls does add value to society even though there is still room for improvement at the audit firms and the Supervisory Authority on Auditing.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2014
Number of pages106