Corporate governance

Audit / HMRC chief Thompson quits in move to head audit regulator

Sir Jon Thompson is to leave the top post at HMRC after just three years to take on the role of chief executive at the troubled audit regulator, Financial Reporting Council (FRC)

Audit / Government consults on plans for overhaul of audit market

Plans for a radical overhaul of the audit market are progressing as the government launches an eight-week consultation to gauge views on CMA market reforms, including possible introduction of joint audits, operational split at Big Four to hive off audit, and more powers for the new audit  regulator

Audit / FRC to tighten auditing and ethical standards

The Financial Reporting Council (FRC) is to introduce more stringent ethical rules for auditors in response to findings from recent audit enforcement cases and audit inspections

Audit / ‘Complexities’ force delay in Sports Direct annual results

Sports Direct has delayed the publication of its annual results, citing the ‘complexities’ relating to its purchase of House of Fraser last August and a request from auditor Grant Thornton for more time

Audit / New code of practice to address shortcomings in internal audit

The Chartered Institute of Internal Auditors (IIA) has begun a consultation on an internal audit code of practice in the wake of high-profile corporate failures

Accounting / AIM listed Renold finds £1.8m accounting error

Renold, an industrial equipment supplier, has postponed its AGM scheduled for 17 July after the company discovered a £1.8m accounting black hole in its gears business unit

Audit / Dingemans to replace Bischoff as FRC chair

Simon Dingemans, former chief financial officer at GlaxoSmithKline (GSK), is set to replace Sir Win Bischoff as chair of the Financial Reporting Council (FRC) to lead the audit regulator's overhaul and transition into the Audit, Reporting and Governance Authority (ARGA)

Audit / AQI 2019: Grant Thornton’s auditing branded ‘unacceptable’

The Financial Reporting Council (FRC) has labelled Grant Thornton’s audit quality as ‘unacceptable’, citing its failure to improve as a ‘deep concern’ after finding a quarter (26%) of all audits assessed over the past five years have required significant improvements, reports Pat Sweet

Audit / AQI 2019: Deloitte shows ‘modest’ improvement in audit quality

Deloitte has shown ‘modest’ improvements in audit quality in this year’s audit quality inspection (AQI) reviews, but has performed better than other Big Four firms

Audit / AQI 2019: EY outperforms Big Four on audit quality target

EY has demonstrated improvements in audit quality in the latest round of audit quality inspection (AQI) reports and is the Big Four firm which came closest to meeting the Financial Reporting Council (FRC) target of 90% of FTSE 350 audits requiring no more than limited improvements

Audit / AQI 2019: BDO must improve audit quality control processes

Revenue recognition and a failure to challenge management assumptions were flagged as ongoing issues with audit at mid-tier firm BDO, found this year’s FRC audit quality inspections (AQI) reviews

Audit / AQI 2019: KPMG auditors fail to challenge management

KPMG has started to turn around its audit business with an improvement in the quality of audits reviewed in the 2018/19 audit quality inspection (AQI) reports, although inspectors criticised a lack of management challenge and quality control, reports Sara White

Audit / AQI 2019: PwC required to stem ‘unsatisfactory’ decline in audit quality

The Financial Reporting Council (FRC) has highlighted a ‘notable’ decline in audit quality at PwC in its annual quality inspection (AQI) particularly in relation to the firm’s FTSE 350 audits, where the number judged to be good has fallen to 65%, well below the regulator’s 90% target

Audit / AQI 2019: decline in audit quality at Mazars

Mid-tier firm Mazars, which was recently hired as auditor of Goldman Sachs’ European arm, has seen a decline in audit quality over the past year with AQI inspectors criticising the firm for not fully addressing earlier issues

Audit / AQI 2019: lack of improvement in audit quality ‘disappointing’

The Financial Reporting Council has made a scathing attack on the quality of UK audit in the latest 2019 Audit Quality Inspections reports, with one in four audits inspected requiring significant improvement. Sara White reports
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