Corporate governance

Audit / KPMG South Africa banned from public sector audits

KPMG South Africa faces further crisis after the auditor general of South Africa (AGSA) announced it is to terminate, with immediate effect, all the firm’s public sector auditing contracts over concerns about potential reputational damage

Audit / Government questions independence of audit regulator

The government has launched an independent root and branch review of the Financial Reporting Council (FRC), with the aim of putting the regulator and the UK at the forefront of corporate governance internationally

Audit / FRC plans £1m additional funds to monitor audit firms, says McLaren

Harsher penalties for poor audit work and tougher monitoring by the Financial Reporting Council (FRC) is necessary given the current lack of confidence in the audit profession. Philip Smith talks to Melanie McLaren, FRC executive director of audit, about the tougher approach

Audit / KPMG South Africa to review audit files

KPMG South Africa has announced that two partners, Sipho Malaba and Dumi Tshuma, have resigned with immediate effect after disciplinary charges were brought against them, relating to failure to disclose relevant financial interests when working with a client, and says it will begin a major review of audit files

Audit / Hildyard: corporate governance needs to be strengthened

Prior to the global financial crisis, the issue of corporate governance was an unromantic fringe topic of little interest to all but the nerdiest technocrats in the already quite nerdish and technocratic area of economic policymaking and regulation. Now it is centre stage, says Luke Hildyard, policy lead on corporate governance at the Pensions and Lifetime Savings Association

Audit / FRC plans to increase fees for third country auditors

The FRC is consulting on plans to increase registration and annual renewal fees for auditors of companies based outside of the EU, with full registration rising to £5,680 for auditors with more than three clients

Audit / PRA reviews external audit of public disclosure rules

The Prudential Regulation Authority (PRA) is consulting on a revision to the rules for the external audit of public disclosure requirements under Solvency II, which would see certain smaller insurers excluded from the requirement

Audit / Haddrill: audit quality and corporate governance must improve

Continuous improvement in audit quality and corporate governance is essential if the UK is to attract investment post Brexit and shake off the legacy of questionable auditor behaviour, says Stephen Haddrill, chief executive of the Financial Reporting Council (FRC)

Audit / FRC plans to sharpen up monitoring of top six audit firms

The Financial Reporting Council (FRC) is to tighten its monitoring of the six largest audit firms, which will include analysis of the skills and attributes of candidates for key roles such as independent non-executives, heads of audit and ethics partners

Audit / FRC threatens £10m fines for poor audit work

The Financial Reporting Council (FRC) will implement the recommendations of the independent review of sanctions undertaken last year, which include introducing a fine of £10m or more for seriously poor work by a Big Four firm and greater use of non-financial penalties, as well as the possibility of ten-year bans for individuals

Audit / Are auditors to blame for high street woes?

As the UK high street once again faces the never ending fallout from the move to online and major retailers go into administration or contemplate restructuring, Mark Gardner, insolvency specialist at Excello Law, asks where sound accounting could have saved some of the casualties  

Audit / FRC refutes claims of ‘internal cultural problems’

The Financial Reporting Council (FRC) has taken the unusual step of responding directly to comments made by the Local Authority Pension Fund Forum (LAPFF) in response to the recent corporate governance code consultation, which the regulator says contain ‘a number of inaccuracies and errors’ about its own governance and culture

Audit / Audit updates: April 2018

In our monthly roundup of developments in audit and governance, KPMG defends its audit at Carillion hearing, PwC collects £2.8m Johnson Matthey audit from KPMG, AIM companies to follow a corporate governance code

Accounting / FRC three-year plan aims to shake up Big Four auditor dominance

The Financial Reporting Council (FRC) has published its three-year strategy and plan for the 2018/19 financial year, which will include a previously announced comprehensive update of the UK’s corporate governance and investor stewardship codes, and indicates potential action on the dominance of the Big Four

Tax / Plans for register of overseas ownership of UK properties revised

The government has provided more details of proposals for a new beneficial ownership register of overseas companies that own UK property or participate in UK government procurement