Corporate reporting

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 / 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 / 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 / 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

Audit / Revised Corporate Governance Code: what you need to know

The 2018 Corporate Governance Code includes a raft of changes, including a provision to encourage greater board engagement and the nine-year rule for directors on the company board, but will it be able to prevent corporate failures? Amy Austin, reporter at Accountancy, investigates

Audit / FRC fines Grant Thornton £4m for independence failings

Grant Thornton has been fined £4m and reprimanded for misconduct by the Financial Reporting Council (FRC) in relation to a lack of independence in the audits of Nichols plc and the University of Salford, with additional sanctions for a former senior partner and three former senior statutory auditors

Audit / FRC fines KPMG £3m over ethical failures at Ted Baker

The Financial Reporting Council (FRC) has fined KPMG £3m and issued a severe reprimand for ethical failures in its auditing of fashion retailer Ted Baker, while Michael Barradell, senior statutory auditor and audit engagement partner, has been given a reprimand and a fine of £80,000

Audit / Internal audit: in-house versus outsourcing

As audit governance faces harsh criticism, Sarah Perrin ACA considers the use of internal audit and asks whether the increasing tendency to outsource this function is diluting the effectiveness of the process or introducing a level of independence

Audit / MPs challenge ex-BHS owner over going concern issues

Following publication of the Financial Reporting Council (FRC) report on PwC’s 2014 audit of BHS and Taveta, the work and pensions select committee has challenged Sir Philip Green to publish the basis for the ‘going concern’ assessment which is central to many of the regulator’s criticism