Corporate governance

Audit / Regulator cracks down on pension scheme governance failures

The Pensions Regulator (TPR) has banned a corporate trustee and one of its directors from acting as pension scheme trustees after multiple governance failures which it said highlighted a lack of competence, capability and integrity

Audit / Grant Thornton faces £200m legal challenge over Patisserie Valerie audits

Grant Thornton is facing a £200m lawsuit brought by the administrators of collapsed café chain Patisserie Valerie, seeking damages in respect of the firm’s audits for the financial periods September 2014 to September 2017

Audit / FRC consults on tougher audit quality management standards

The Financial Reporting Council (FRC) is consulting on plans to revise the standards for an audit firm’s responsibilities to design, implement and operate a system of quality management, in response to changes made by the International Auditing and Assurance Standards Board (IAASB)

Audit / PKF Littlejohn picks up Boohoo audit

Online fashion retailer Boohoo has appointed PKF Littlejohn as its external auditor, replacing PwC which stepped down from the role in October

Audit / £15m for local audit improvements post-Redmond review

The government is to offer councils an additional £15m in response to findings of the independent review into the effectiveness of local audit carried out by Sir Tony Redmond earlier this year, to fund a suite of improvements in transparency and accountability

Audit / Audit updates: 2020 highlights

In a round-up of the biggest audit stories of the year, we look at all the non-coronavirus news, including audit wins and losses, plans to break up Big Four audit firms, fines, reprimands, standard revisions, audit quality inspections and an exclusive interview with FRC boss Sir Jon Thompson

Audit / FRC flags ‘importance of challenge culture’ in audit firms

The Financial Reporting Council has undertaken new analysis of its audit quality inspection results after discovering 80% of audits required improvement, effective challenging was a key component  

Audit / Deadline for Covid insolvency measure changes extended

The government has announced a further extension to changes to insolvency measures and the regulations for company AGMs, designed to relieve the pressure on businesses dealing with coronavirus

Audit / No more rubber stamping audits as covid pressure bites

As auditors wait for a government response to Sir Donald Brydon’s audit review, Johnston Carmichael’s audit head Graham Marjoribanks argues action already taken by firms and regulators will see audit add value and a more robust approach to client relationships

Audit / Audit reform will fail without fundamental overhaul, warns ICAEW

ICAEW has published a manifesto setting out its vision for the future of audit, saying the success of any changes to firm structure and regulation depends on a clearer understanding of the role and purpose of audit

Audit / FRC builds case for audit committee standards

The Financial Reporting Council (FRC) says research carried out with audit committee chairs (ACCs) indicates a need to develop standards for audit committees in order to ensure a more consistent approach to promoting audit quality

Audit / FRC to look at review standard for interim financial statements

The Financial Reporting Council (FRC) is consulting on proposals to revise its review standard for interim financial statements, to ensure the level of work carried out by auditors reflects wider expectations on going concern

Audit / Government’s Covid protection procurement failures cost £10bn

Failure to maintain adequate stockpiles of personal protective equipment (PPE) cost the government £10bn as prices soared during the pandemic, while moves to boost supply failed to get equipment to frontline workers quickly enough, the National Audit Office (NAO) has found

Audit / Big Four face FTSE non-audit work challenge

Big Four’s fees for non-audit work at audit clients declined by a fifth last year, but much more needs to be done to increase public confidence, says Chris Biggs of Theta Global Advisors

Audit / Covid impacts going concern assessments

Audit firms have heeded Financial Reporting Council (FRC) advice to implement additional measures to enhance their evaluation of companies’ going concern assessments during the pandemic, a review by the regulator has found