Accounting watchdog: Third of all audits ‘unsatisfactory’ amid fears sector reforms will be watered down November 18, 2021 An “unacceptably high” number of audits still need improving, according to the UK accounting watchdog’s latest report, amid increasing concerns that the government may scale back long-awaited corporate governance and audit reforms. The Financial Reporting Council (FRC) today published its latest annual report on UK audits, finding that 33 per cent of all audits still [...]
After 12 years: PwC likely to be replaced by EY as Aviva auditor November 18, 2021 Aviva has proposed EY as its new auditor from 2024, replacing PwC after 12 years.
Prospect of watered down UK audit reforms draws criticism November 17, 2021 Audit groups and investors have warned the government that scaling back long-awaited corporate governance and audit reforms could lead to more corporate scandals, according to reports. In a letter to business secretary Kwasi Kwarteng, the chief executive of the Chartered Institute of Internal Auditors, John Wood, said stronger regulation of internal controls were fundamental to [...]
UK audit reforms and governance to be watered down after business backlash November 9, 2021 The UK’s reform package to overhaul corporate governance and auditing will be “scaled back” following pushback by businesses, according to reports. Officials working on the plans, which are being finalised, are expected to water down some of the proposals, the Financial Times reported. The reform package, which has been touted as the biggest overhaul to [...]
KPMG gave ‘untruthful defence’ in tribunal over £13m Silentnight fine October 13, 2021 The UK accounting watchdog has today denounced KPMG for knowingly giving an “untruthful” defence over its conflict of interest in the 2011 sale of Silentnight, for which it was fined £13m. The verdict of the Financial Reporting Council’s (FRC) disciplinary tribunal marks the first time ever that the body has found an accountancy to have [...]
Audit reform: FRC asks for power to cap Big Four’s audit clients October 12, 2021 The chief executive of the UK’s accounting watchdog has asked ministers for the authority to enforce a cap on the number of large companies that any one accountancy firm can audit, in an attempt to break up the dominance of the Big Four firms. Sir Jon Thompson went on to question the likelihood of the [...]
EY hit with $1bn claim for one of the largest bankruptcies in Swiss history September 7, 2021 EY’s Swiss practice is facing investor claims for giving clean audits to opaque conglomerate Zeromax for years before it collapsed, according to the Financial Times who first reported the news. Zeromax, whose crash in 2010 made it the second-largest bankruptcy in Swiss history, made multimillion-dollar jewellery purchases and made irregular offshore payments – which the [...]
FRC to ‘strengthen’ audit governance code to tackle Big Four accounting scandals August 26, 2021 The Financial Reporting Council (FRC) has today announced proposals to update and “strengthen” its Audit Firm Governance Code and establish “operational separation” at the Big Four firms. The proposed changes are aimed at clarifying the role of partnership boards in holding management to account, said the UK accounting watchdog in a statement. A key proposal [...]
German MPs fail in bid to publish ‘dynamite’ report on EY’s Wirecard audits August 13, 2021 Germany’s highest court has rejected an attempt by MPs to force the publication of an unredacted report into EY’s audits of Wirecard, according to reports. The lawsuit was filed by MPs who had investigated the Wirecard fraud, one of the biggest corporate scandals, according to the Financial Times. The Federal High Court of Justice has [...]
Watchdog slams KPMG for ‘unacceptable’ bank audits for third year running July 26, 2021 KPMG has been called out for failing to meet standards in its bank audits for the third year in a row, by the Financial Reporting Council (FRC) in a review published on Friday, that found that a third of large company audits by the biggest UK firms failed to meet standards. The industry watchdog called [...]
