How good is your auditor?

BOARDS and their audit committees rely on the external auditor to ensure that their financial statements are true and fair.

However, the annual audit of a company usually results in a fairly standardised report today (although this will change when the enhanced auditor's report is introduced from financial year 2016). Over time, this has led to the impression held by many directors that audit firms - at least the big four which audit the majority of the listed companies - are essentially the same.

Yet, discerning audit committee members will know that a specific audit firm (and, indeed, a specific engagement team) can make a significant difference to the quality of an audit. But how is the audit committee to obtain a better understanding of the quality of an audit firm or engagement team?