Leaders on culture and governance

Auditors are real trust-builders in the market economy

Auditors sit at a critical point in the chain that connects companies to investors, enabling the informed decisions on which efficient markets depend. But that role is under strain. From structural disruptions to transformational forces, he identifies five tension points that the profession must navigate – and in each case, traces the challenge back to the same imperatives: independence, credibility, and judgment.

Key take-aways:

• Auditors occupy a critical position in the chain connecting companies to investors. Their role is not administrative – it is foundational. Without independent verification of information, efficient price formation in capital markets is simply not possible.
• Long-term relationships, sustained investment in talent, and multi-year client cycles are critical to the value and credibility of the audit profession. It is yet unclear whether private equity investment in audit firms sits well with these objectives as it may introduce a cultural and financial misalignment.
• Market concentration has reached a point where some companies cannot find an auditor at all. These “audit orphans” are evidence of structural disruption. Joint and shared audit models offer a practical path to a more competitive, resilient market.
• The profession must remain attractive to talent. A supervisory environment that discourages candidates from entering or staying undermines the very quality it seeks to protect. A risk-based approach to oversight is the right balance.
• Artificial intelligence will automate data processing and routine checks but will raise – not lower – the premium on human judgment. The auditor’s irreplaceable contribution is the capacity to assess, challenge, and decide. Paradoxically, AI makes the fundamentals more visible, not less relevant.
• The scope of assurance is expanding rapidly – into carbon, social metrics, and AI algorithms. The audit methodology travels across domains. What must travel with it is the same standard of independence that underpins trust in financial audits.

Watch the full interview: