Accounting Insight 2017: Why good auditors do bad audits!

On the 29^th of November Accounting Insight took place. Accounting Insight is an interactive symposium in which a discussion is held about different accounting-related topics. This event helps building a bridge between academic theory taught in lectures at Tilburg University and the practical situations individuals come across within companies.

As of February we, as the organizing committee, have been busy organizing this event. The organization started with choosing a suitable topic and approaching interesting speakers. The topic was quickly chosen, the overall theme of the evening would be ‘Why good auditors do bad audits’. Finding the speakers for the speakers’ panel went more easily than expected. Within a reasonable amount of time we had a prominent and enthusiastic panel of speakers and the two most important components for a successful evening were a fact. After this we could start finding a suitable location, keeping good contacts with the sponsors and designing the promotion materials.

“They believe that a whole generation has to be removed before this culture problem can be solved.”

Soon we reached the 29^th of November and enthusiastic participants who were waiting to obtain more insights in the current developments of the accounting sector were slowly filling the foyer of the Studiozaal of Theaters Tilburg. Chairman of the evening Bas Knoop lead the discussion and four propositions were discussed by Godert van der Poel (CFO Siemens NV), Rob Fijneman (Chairman KPMG), Pieter Jongstra (Chairman NBA), Dagmar van Boekel (Partner Joore) and Johan Hopmans (Partner Deloitte).

The 53 measures that were implemented to improve the audits was the first topic that was being discussed. According to Mr. Jongstra the profession is heading the right direction, but this has not been acknowledged by the public yet. On the other hand, Mr. Van der Poel and Mrs. Van Boekel think that the problem is mainly about the prevailing culture within the audit firms. They believe that a whole generation has to be removed before this culture problem can be solved.

The capacity problem and the partner structure were the next topics. There was no doubt between the speakers that the sector is dealing with a capacity problem. Audit firms are generally dealing with capacity struggles that don’t benefit the quality of the audit very often. Mrs. Van Boekel states that the partner structure is the reason she left a Big Four firm for a smaller audit firm. Because of this she is working at clients more often, even though she is a partner at Joore now.

“Where improvement is needed? Communication”

About the role of an auditor when detecting fraud the panel mostly agreed. Detecting fraud should not be the primary role of an auditor, the panel believes, but auditors for sure have to be alert! ‘Where improvement is needed? Communication’, states Mr. Jongstra.

The last topic is technology. As of lately, the accounting profession is changing. Technological developments play a major role. Unfortunately this doesn’t show up yet in the education program, states Mr. Fijneman. An auditor doesn’t have to be an IT specialist, but in the future every audit team will consist of specialised individuals including an IT-auditor.

After all these insights are being shared, there was a closing drink where all participants could evaluate the evening or get in touch with one of the partner firms of Accounting Insight 2017.

All in all, I believe we can look back at a successful evening which has helped bringing together theory and practise! The evening would not be possible without our partners, therefore I would like to make use of this occasion to thank them again. Next to that, of course I want to direct a word of thanks to our speakers’ panel and the chairman of the evening! Last but not least I want to thank my fellow committee members Anne, Rob and Matthieu and our coordinator Cindy for organizing this event!

I hope to see you all at the next edition of Accounting Insight!