Auditing

Audit / Global ethics board strengthens rules for accountants over inducements

The International Ethics Standards Board for Accountants (IESBA) has updated its global ethics code to strengthen rules to guard against accepting excessive inducements and hospitality, highlighting the importance of avoiding being put in a compromising situation 

Audit / KPMG in banking regulator’s spotlight

The Prudential Regulation Authority (PRA) is believed to have held discussions with financial institutions and other regulators over potential risks to KPMG’s business, following the firm’s string of problems in South Africa and challenges to its auditing of collapsed outsourcer Carillion

Audit / FRC auditor fines hit £18m mark

Fines imposed by the Financial Reporting Council (FRC) shot up by 23% to reach £17.96m last year, compared with £14.59m in 2016/17 as the regulator responded to pressure to crack down on failures at audit firms, according to research by Thomson Reuters

Audit / IAASB consults on updates to risks of material misstatement standard

The International Auditing and Assurance Standards Board (IAASB) is consulting on revisions to ISA 315, Identifying and Assessing the Risks of Material Misstatement, which are designed to ensure the standard reflects developments in technology and changes in business practice

Audit / MPs flag concerns over ‘Big Four only’ bank audit rules

MPs are challenging the Prudential Regulation Authority (PRA) to answer claims that it has questioned the potential appointment of Grant Thornton as auditor to Goldman Sachs, on the grounds of concerns over the mid-tier audit firm’s capabilities

Audit / FRC publishes revised corporate governance code

The Financial Reporting Council (FRC) has published its revised UK corporate governance code, which it says places emphasis on businesses building trust, with greater board engagement with workforce views and an end to ‘formulaic calculations of performance-related pay’ for executives

Audit / African insurer adds Deloitte as second auditor to crisis-hit KPMG

African financial services company Old Mutual, which has a listing on the London Stock Exchange, has announced it has appointed Deloitte as a joint auditor alongside KPMG, which has audited the company for almost two decades but has recently been involved in a string of scandals in South Africa

Audit / MPs call for major overhaul of Big Four audit firms

MPs and regulators are increasing the pressure on the Big Four to address claims that the audit market is ‘broken’, citing a lack of competition and poor quality auditing, amid calls for action from the Competition and Markets Authority (CMA) to address the issues, reports Pat Sweet

Audit / Artificial intelligence and machine learning in mid-tier firms - part 2

Rob Munro explores the challenge to mid-tier firms posed by artificial intelligence, machine learning and blockchain as theses smaller firms struggle to compete with the Big Four who have the financial backing to invest heavily in these developing technologies

Audit / ICAEW wants more debate on auditor scepticism

ICAEW is calling for a more ‘substantial and constructive’ debate about auditor scepticism to address public concerns in what it calls the ‘hostile current environment’ regarding corporate reporting

Audit / Mike Suffield to take over top director role at FRC

The Financial Reporting Council (FRC) has named Mike Suffield as acting executive director of audit and actuarial regulation following the announcement that the previous postholder Melanie Hind (nee McLaren) is to step down to take up a family opportunity overseas

Audit / MPs pressure FRC over BHS findings

MPs are demanding the Financial Reporting Council (FRC) provides more details of its investigation into PwC’s auditing of BHS as a going concern prior to the retailer’s sale for £1, now that its previous owner, Taveta Group, has lost a court appeal to prevent full publication of the regulator’s findings

Audit / EY picks up SIG audit from Deloitte

FTSE 250 specialist buildings group SIG has appointed EY as its new external auditor, replacing Deloitte who were ousted after shareholders at its annual general meeting (AGM) voted by a large majority against the firm’s reappointment following the discovery of a £3.7m profits overstatement

Audit / Bannerman paragraph clarified: what it means for auditors

Following uncertainty about use of the Bannerman clause, ICAEW has issued revised guidance, Technical Release 01/03AAF The audit report and auditors’ duty of care to third parties. Helen MacNeill ACA, senior technical writer at Croner-i, explains the implications for auditors

Audit / PwC faces record $625m fine over failed US bank

PwC faces paying $625m (£474m) in damages to US regulator, the Federal Deposit Insurance Corporation (FDIC), a record for an accounting firm, after a federal judge ruled the auditor had failed to detect fraud at Colonial Bank, which collapsed in 2009
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