SYNOPSIS
Efficient capital markets rely on a continuous supply of reliable, timely, and audited information. The economic value of an audit derives from the reduction in risk of erroneous or manipulated information. Traditionally, the auditing has focused on annual financial reports. Given the speed of information creation and dissemination, the role of auditors may need to adapt. There are three areas in which auditors might help improve information quality: (1) non-GAAP earnings; (2) ESG reporting; and (3) cybersecurity risks disclosures. To provide assurance over these types of information, audit firms need to identify the appropriate subject matter for assurance, obtain expertise to provide assurance, develop a verification process, and commit to a system of organizational support. Multidisciplinary practices have the potential to provide many types of expanded assurance. However, success is not inevitable, and market, social, and regulatory forces will have much to say about the emergence of new assurance initiatives.
