Corporate reporting

Audit / Grant Thornton picks up £500K Mothercare audit

High street mother and baby retail chain Mothercare has chosen Grant Thornton UK as its new auditor with effect from the 28 March 2020 financial year, ending a 17-year relationship with Deloitte

Audit / PwC pays $335m over Colonial Bank audit failures

PwC has paid $335m (£253m) to settle claims brought by the Federal Deposit Insurance Corporation (FDIC) relating to professional negligence in the US firm’s auditing of the Colonial Bank, which collapsed in 2009 with an estimated $3bn loss to the deposit insurance fund

Audit / MPs want ‘step change’ in local body auditing transparency

More than one in five local public bodies do not have proper arrangements in place to secure value for money for taxpayers, and some are also not putting enough information in the public domain about their performance, including reports from their external auditors, a public accounts committee (PAC) inquiry has highlighted

Audit / Financial Reporting Lab seeks views on future projects

Just a week after news that the Financial Reporting Council (FRC) is to be disbanded, its financial reporting lab is seeking views on the reporting topics that it should select for its projects over the next few years

Audit / NAO consults on code of practice for local auditors

The National Audit Office (NAO) is consulting on an update to the code of audit practice for auditors of local public bodies, to be introduced next year

Audit / EY digs in at Tullow Oil audit

EY has been chosen as external auditor of multinational oil and gas exploration company Tullow Oil, replacing Deloitte which has held the role since 2002

Audit / Deloitte wins £17m CRH audit

Deloitte is to take over as auditor of FTSE 100 building firm CRH, replacing EY which has held the post since 1988, in win set to bring in fee income of around €20m (£17m)

Accounting / Essentials: Brexit changes to company law for accountants

The government is passing substantive legislative changes to Companies Act 2006 (CA 2006) via statutory instrument and has issued guidance letters for accountants and auditors with advice on how to operate cross-border in the event of a no deal Brexit. James Waller CA, technical writer at Croner-i Tax and Accounting, explains the key considerations

Audit / EY takes the wheel from KPMG on Aston Martin audit

Aston Martin has announced the appointment of EY as its auditor, after KPMG declined to reapply for tender less than three months after the company made its debut on the London Stock Exchange

Audit / FRC consults on tougher going concern rules

The Financial Reporting Council (FRC) is consulting on plans to revise the International Standard on Auditing (ISA) (UK) 570 Going Concern, which will mean requirements for UK auditors will be significantly stronger than those required by international standards

Audit / Audit updates: March 2019

In this month’s round-up of audit news, FRC extends probe into Carillion audit, no deal Brexit advice for auditors, Vodafone drops PwC in swap to EY, BDO picks up £200k Halfords audit from KPMG

Audit / FRC extends probe into Carillion audit of financial statements

In an update to its investigation into failed outsourcer Carillion, the Financial Reporting Council (FRC) has revealed it has extended the scope of its probe into the preparation, approval and audit of the company’s financial statements to include certain matters relating to the financial statements for the year ended 31 December 2013

Audit / ISA (UK) 540 (Revised): scalability and audit of accounting estimates

The revised international auditing standard, ISA (UK) 540 (Revised) Auditing Accounting Estimates and Related Disclosures, attempts to improve scalability issues and treatment of accounting estimates as more complex forward analysis becomes available for financial reporters. Michelle Roberts CA, specialist audit writer at Croner-i Tax and Accounting, considers the judgment issues for auditors

Audit / Vodafone drops PwC in swap to EY for £18m audit

Telecom giant Vodafone Group is ringing the changes once again in its choice of auditor and has dropped PwC after just four years in favour of EY, following a competitive tender process triggered by concerns over potential conflicts of interest

Audit / Deloitte Japan fined $2m over independence failings

Deloitte’s firm in Japan is to pay $2m (£1.56m) to settle charges from the Securities and Exchange Commission (SEC) that it issued audit reports for a client at a time when dozens of its employees maintained bank accounts with the client’s subsidiary, in violation of the regulator’s audit independence rules