Auditing

Audit / FRC strengthens auditing standard ISA 315

The Financial Reporting Council (FRC) has revised its standard for the identification and assessment of risks of material misstatement in an audit of financial statements, with the aim of introducing a more robust and consistent approach

Audit / GT fined £3m over audit ethics failures

The Financial Reporting Council (FRC) has hit Grant Thornton UK with a £3m fine, discounted to £1.95m, over a series of ethical and independence failures in its auditing of Conviviality Retail, part of the collapsed alcohol wholesaler and retailer group

Audit / FRC gives four-year deadline for Big Four audit separation

The Financial Reporting Council (FRC) has given PwC, EY, KPMG and Deloitte four years in which to agree to operational separation of their audit practices, in a bid to drive up audit quality and end what the regulator dubbed ‘persistent cross subsidy’ from the rest of the firm

Audit / Audit firms ‘respond appropriately’ to Covid-19 going concerns

Audit firms have responded appropriately to the need to enhance their evaluation of companies’ going concern assessments during the Covid-19 emergency, and the additional measures are being applied consistently, according to the Financial Reporting Council (FRC)

Audit / NAO warning to MoD over aircraft carrier costs

The National Audit Office (NAO) has published the latest in a series of challenging reports on defence procurement, highlighting how significant uncertainties over the future costs of plans to bring new aircraft carriers into service may limit their effectiveness

Audit / GT probe finds £19m hole in Lookers’ accounts

Grant Thornton has identified a £19m hole in the accounts at national car dealership Lookers, stemming from fraudulent expenses claims and incorrect or inconsistent application of policies, processes and accounting standards

Audit / FCA censures Redcentric over misleading financial information

IT services provider Redcentric has been given a public censure by the Financial Conduct Authority (FCA) for committing market abuse and ordered to pay £11.4m compensation to investors, while three former executives face legal proceedings

Audit / NAO offers guide on good practice in Covid-19 financial reporting

The National Audit Office (NAO) has published a guide to help audit and risk committees of government departments and arms-length bodies advise their organisations on financial management and reporting during, and in the period immediately after, the Covid-19 outbreak

Audit / FRC probes three firms over London Capital & Finance audits

Three audit firms – PwC, EY and Oliver Clive & Co – are facing a Financial Reporting Council (FRC) investigation into their auditing of London Capital & Finance (LC&F), a mini-bond investment specialist which collapsed last year amid controversy over the regulation of its high-risk products

Audit / NAO deepens analysis of £1.7 trillion government spending

The National Audit Office (NAO) reviewed £1.7 trillion of government expenditure over the past year, and reports its work led to positive financial impacts of £1.1bn

Audit / Wirecard says disputed €1.9bn ‘may not exist’

Beleaguered German payments fintech Wirecard has been forced to admit that €1.9bn (£1.7bn) of funds which auditors EY reported as ‘missing’ may never have existed, while its former CEO has been arrested on possible fraud charges

Audit / FRC reprimands KPMG over auditing shortcomings

KPMG has been reprimanded by the Financial Reporting Council (FRC) for shortcomings in its auditing of the distributable reserves of a venture capital company, Foresight 4 VCT, with the regulator imposing non-financial sanctions on the firm

Audit / NAO warns government over infrastructure contract expiry costs

Important infrastructure including roads, hospitals and schools could return to the public sector in an unsatisfactory condition and services could be disrupted when a slew of private finance initiative (PFI) contracts end in five years’ time, because the government lacks a consistent and strategic approach to managing the financial risks involved, the National Audit Office (NAO) has warned

Audit / Deloitte drops Lookers audit

Troubled car dealership Lookers has announced a further delay in publication of its 2019 results, already deferred to the end of this month, and is seeking a new auditor after Deloitte revealed its intention to resign after 14 years in the role

Audit / FRC ends Tesco probe with no disciplinary actions

The Financial Reporting Council (FRC) has closed its five-year investigation into accounting irregularities at Tesco, and has dropped plans to take any further disciplinary action regarding accountants working at the supermarket chain, having also earlier halted its probes into auditor PwC and ICAEW members
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