Auditing

Audit / Call for internal audit and finance team collaboration

The Chartered Institute of Internal Auditors (IIA) and International Federation of Accountants (IFAC) have collaborated on a research study which aims to encourage closer working between the internal audit function and finance function in order to ensure effective governance

Audit / Venus: artificial intelligence in the boardroom

The gathering pace of technology means that machine learning and blockchain will soon make their presence felt at the top level of business, but there will still be a need for someone to hold the reins, argues David Venus FCIS

Audit / KPMG and former ESML finance director face FRC questions

The Financial Reporting Council (FRC) is conducting a disciplinary hearing involving Douglas Morgan, a former finance director of Equity Syndicate Management Ltd (ESML), KPMG and a partner and former partner at KPMG, in relation to a long running investigation into financial reporting at a Lloyds syndicate

Audit / FTSE 350 reporting improves ahead of new governance code

Next year’s introduction of a new corporate governance code is already having an impact on reporting in the FTSE 350 ahead of the January 2019 deadline, according to analysis by EY which found indications that companies are already starting to provide information in new areas like company culture

Accounting / KPMG admits misconduct over BNY Mellon

The Financial Reporting Council (FRC) has announced that KPMG and partner Richard Hinton have admitted misconduct in connection with client asset reports prepared for BNY Mellon entities in 2011, and are now facing potential sanctions

Accounting / Big Four challenged over climate change reporting

Environmental lawyers ClientEarth have reported four companies to the Financial Reporting Council (FRC) over failures to address climate change trends and risks in their reports to shareholders, and have challenged their Big Four auditors to explain their approach

Audit / Grant Thornton calls for independent body to hand out FTSE audits

In a bid to kickstart the debate on the future of FTSE audit, mid-tier firm Grant Thornton is calling for the creation of an independent quango to appoint auditors for listed company audits to improve competition beyond Big Four audit firms

Audit / FRC in legal landmark over Sports Direct papers

The High Court has ordered Sports Direct to release a bundle of documents requested by the Financial Reporting Council (FRC) as part of its probe into the retailer’s 2016 accounts, marking the first time the regulator’s powers under the Statutory Auditors and Third Country Auditors Regulations 2016 (SATCAR) have been tested

Audit / Lords press Chancellor to commit to Big Four competition review

The Chancellor has rejected calls from members of the House of Lords for a the break-up of the Big Four audit firms, saying that any decision to review audit market domination rests with the Competition and Markets Authority (CMA), reports Sara White

Audit / Mandatory audit firm rotation fails to deliver lower costs

Mandatory audit firm rotation (MAFR) has forced up audit costs for the FTSE 100, with fees increasing 10% in the last 12 months, but is delivering very mixed results in terms of reducing Big Four dominance and increasing competition, according to a report from Source Global Research

Audit / Big tech could shake up the audit market

High-profile cases and the gathering pace of technology could mean that technology firms enter the audit market and disrupt the status quo, according to analysis by Source Global Research 

Audit / Government plans overhaul of dividend framework

The government is considering whether to reinforce the rules on dividend payouts and distributions to give stronger reassurances to shareholders and prevent dividends from undermining the viability of a company, reports James Bunney

Audit / FCA warns auditors over client asset reporting

Audit firms’ performance has come under fire from the new head of the Financial Conduct Authority (FCA), who has said audit quality needs to improve ‘urgently’ and warned that some firms are failing to produce adequate reporting on client assets

Audit / Grunberg: Big Four challenger would shake up profession

The domination of the Big Four has led to calls for the creation of a new competitor. David Grunberg, founding partner of Grunberg & Co, looks at the consortium approach of mid-tier firms to create a Big Five firm to increase audit competition 

Audit / Audit updates: September 2018

In our monthly roundup of developments in audit and governance, PwC slated for ‘misleading’ BHS audit, revised Corporate Governance Code, Grant Thornton cleared of misconduct over Globo audit, auditing accounting estimates standard to be revised
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