Introduction
A conversation with Vince Niblett, Managing Director, Audit
- Under the Statutory Auditors (Transparency) Instrument 2008, Deloitte does not need to produce a report until the middle of next year. So what is the reasoning behind the firm producing this report now?
- How do you value the importance of transparency, both for Deloitte, and in the broader business context?
- Besides the production of this report, what is Deloitte doing to promote transparency in the marketplace?
- Where do you see the future of our profession? Is greater transparency inevitable, or desirable?
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Under the Statutory Auditors (Transparency) Instrument 2008, Deloitte does not need to produce a report until the middle of next year. So what is the reasoning behind the firm producing this report now?
I am pleased to be publishing this transparency report for Deloitte a year ahead of schedule. In so doing, we demonstrate the open and straightforward nature that underpins our values at Deloitte, and our commitment not only to delivering quality, but also to cooperation and openness.
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How do you value the importance of transparency, both for Deloitte, and in the broader business context?
By providing our stakeholders with a clear view of how Deloitte works, we are delivering on a vital element of our business: making proactive efforts to sustain our stakeholders’ high levels of trust. But the issues of trust and openness in business extend beyond the concerns of our firm. The complexity of the capital markets and the challenges posed by the current economic climate have provided an even greater need for transparency as a basis for demonstrating audit quality.
Robust corporate governance is key for maintaining confidence in the markets by investors and consumers. Heightened scrutiny and accountability place board members under ever greater pressure to deliver effective governance, reporting and shareholder value. Navigating a course to meet these demands is vital if ‘UK plc’ is to sustain effective capital markets and ensure continued economic success.
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Besides the production of this report, what is Deloitte doing to promote transparency in the marketplace?
We take seriously the contribution we make to the profession and to capital markets more widely by, for example, participating in public policy formulation. We continue to build our audit services upon our reputation and our ability to deliver high quality services to complex clients and markets. Our robust policies, procedures and methodology are then complemented by strong quality control, a challenging programme of review and risk monitoring, as well as our primary asset: the quality of our people. As a firm, we are only as strong as our people and processes allow, and the more we can do to demonstrate the ethics of openness and accountability that underpin our firm, the stronger we will be.
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Where do you see the future of our profession? Is greater transparency inevitable, or desirable?
Auditing today is as complex and important as ever. The changes introduced by the Companies Act 2006, ranging from auditor liability reform to the introduction of a new offence for reckless reporting, coupled with the challenging capital market conditions, have wide ranging implications. Accounting, auditing and ethical standards all continue to become more complex and onerous, as regulators and other market participants seek to continue the drive for quality in all aspects of our clients’ businesses and our own. We welcome the increased openness of approach and also support the Financial Reporting Council in its efforts to find ways of reducing the complexity in financial reporting.
Vince Niblett
Managing Director, Audit
Deloitte & Touche LLP