The Foundation for Auditing Research (FAR) is established following recommendation 5.10 of the Dutch audit profession’s improvement plans (“In the public interest”) of September 2014. The activities to be carried out by FAR consist of three elements:
- opening the ‘black box’ of auditing by gathering data from the affiliated audit firms;
- conducting multidisciplinary and multi-method research projects based on a research agenda, and:
- knowledge dissemination to academically inform the professional development and policy making.
All scientific research within FAR is conducted under the FAR Code of Independence.
The FAR is open to all audit practices, both large and small as well as auditors in business and government. Audit firms and departments can affiliate with FAR if they provide data access and commit to a minimum grant of EUR 50.000 or more. Other parties wanting to contribute, either by providing research data or financial means, are welcome as sponsors. Such commitments are for an initial 5-year period.
The ten largest audit firms in the Netherlands provide the necessary research funds and research data to FAR. Deloitte, EY, KPMG, PwC, Baker Tilly, BDO, Grant Thornton, Mazars, Accon AVM and Flynth have jointly committed a total of EUR 1.6 million per year.
In addition, Stichting Accountantsfonds has been a valued FAR sponsor since 2016 with an annual contribution of € 100,000 for a period of five years. The primary objective of this foundation is to subsidize the development of research and education programs.
The board of FAR consists of an independent chair, four independent academic board members, and board members representing the affiliated audit firms. In the event of a tie, the chair of the board shall have the casting vote (i.e., the independent chair and the independent academic board members jointly hold the majority of board votes, likewise do the independent chair and the board members representing the affiliated audit firms).