ABSTRACT

This chapter evaluates radical alternative solutions to the problems of the audit market. These include: the ‘audit-only’ split previously discussed; the introduction of conflict of interest waivers; the relaxation of the blacklist to allow audit and tax work to be undertaken by the same firm, allowing UK auditors to be sued more easily; mandatory insurance of the financial statements, providing companies with loss coverage for accounting errors and auditors providing a guarantee with their work; independent auditors, achieved by severing the link between auditors and their clients by requiring regulators or a watchdog body to choose firms’ auditors; the introduction of a state-run auditing function; standardized self-service auditing; open standardized audit AI allowing smaller accounting firms to operate with all the advantages and resources of the Big Four by virtue of the global reach of the AI system; joint audits.