Audit quality and inspection in the Netherlands: The importance of an intellectual approach to experiential learning and practice advancement

Abstract

Recent reported failings of audit practice and the extent of fines and sanctions issued against major audit firms in the Netherlands have resulted in severe criticism of the Dutch accounting profession. This paper contemplates how a noted Dutch tradition of excellence in auditing has shifted to one dominated by notions of inadequacy. It considers the content of AFM inspection reports, analyses various elements of the profession’s response to the criticisms being made of the quality of auditing, reflects on the scale and nature of identified problems, assesses the implications for the standing and future development of the auditing profession in the Netherlands and explores the scope for meaningful experiential learning and practice advancement.