Editors choice Road to Recovery Scope and competition are two major issues that feature in the current

debate on the future of audit. The first concerns the nature of the audit function, while the second deals with the marketplace within which audit services are provided. ACCA has engaged actively in that debate and carried out extensive programme of consultation with members and stakeholders. We have proposed that the auditor, in future, should be prepared to take on new responsibilities, such as reporting on companies, risk management arrangements and on the financial assumptions underlying their business models. ACCA considers that some movement on auditor liability would help to encourage the scope of audit being expanded, and at the same time address competition in the market. There needs to be some additional recognition of the fact that auditors do not guarantee the accuracy of the companys accounts or the integrity of the underlying records. Rules governing liability become counter-productive when they encourage defensive practices by auditors who fear being sued by investor, in the event of a corporate collapse. In other words, if we want to see innovation and get more from the audit process, then we need to set our road to recovery and tackle the thorny question of auditor liability.