Trust in Financial Reporting Available to Purchase

Trust is an essential ingredient in facilitating financial transactions. The financial reporting process helps to create trust, but it, in turn, has to be trusted. Auditing and professional standards have been the traditional means by which trust in financial reporting has been fostered. Recently, these institutions have been put under great pressure by changes in the size and scope of financial markets. The consequence is likely to be a continuing change in the nature of trust and the means by which it is supported. In the future, personal trust is likely to be substituted increasingly by trust in systems supported by regulatory bodies. This does not mean that trust is no longer important, but rather that the form which it takes has changed. The importance of trust needs to be recognised by those engaged in shaping the future of financial reporting, if they are to meet the needs of users of financial information.