Corporate governance

Audit / EY US sets up independent audit quality committee

EY US has set up an independent audit quality committee (IAQC), comprised of senior external leaders and a former member of the Public Company Accounting Oversight Board (PCAOB), which will advise the US firm’s senior leadership on issues that affect audit quality

Audit / FRC Carillion probe to continue ‘well into 2019’

The Financial Reporting Council’s (FRC) investigation into Carillion is set to continue for much of this year but will be completed ‘promptly and thoroughly’, the regulator has said in an update on its examination of KPMG’s auditing and the conduct of two former finance directors of the failed outsourcer

Audit / Stallabrass: CMA joint audit proposal is a challenge to mid-tier firms

The Competition and Markets Authority’s (CMA) recommendation of joint audits for FTSE 350 companies will force mid-tier firms to invest in resources and skills to be able to contend with the Big Four. Matthew Stallabrass, partner, corporate audit at Crowe, considers the implications of the Kingman and CMA audit reviews

Audit / Last day for CMA audit market consultation response

Today marks the final deadline for responses to the consultation by the Competition and Markets Authority (CMA) on changes to legislation to improve the audit sector, which include separating audit from consulting services; greater accountability for audit committee chairs and introducing a ‘joint audit’ regime

Audit / KPMG suspends Carillion audit partner

KPMG has suspended Peter Meehan, the audit partner for failed outsourcing company Carillion, and three other members of staff after discovering issues with documentation provided to the Financial Reporting Council’s (FRC’s) audit quality review (AQR) of the company in 2017

Accounting / NAO flags concerns over health of NHS finances

The National Audit Office (NAO) warns that the current funding model for the NHS is not sustainable, despite the government’s pledge of an additional £20.5bn cash boost, because of the existence of substantial deficits in some parts of the system and the continued failure to hit performance targets

Audit / BEIS committee warned over audit reform proposals

Both academics and business experts raised concerns of ‘unintended consequences’ of audit reforms to the business, energy and industrial strategy (BEIS) committee, with broad disagreement over whether the changes should be led by government or business, reports James Bunney

Audit / Half of council CFOs want changes to external audit

The government needs to improve its oversight of the governance system to help local authorities cope with increasing financial and demand pressures, with a quarter of chief finance officers (CFO) from councils calling for external auditors to focus on value for money, according to a report from the National Audit Office (NAO)

Audit / NHS and local government bodies ignore auditors’ warnings

The number of NHS and local government bodies with significant weaknesses in their arrangements for delivering value for money is ‘unacceptably’ high, but bodies are failing to take action on auditors’ warnings, according to a report from the National Audit Office (NAO)

Audit / Audit updates: January 2019

In this month’s round-up of audit news, the Competition and Markets Authority releases its initial findings into the lack of competition in the listed audit market with the Big Four under fire, while the Kingman review questions to competency of the audit regulator, while Patisserie Valerie drops Grant Thornton in auditor switch to RSM

Audit / SEC fines Crowe’s US firm $1.5m over audit failures

US firm Crowe has agreed to pay a penalty of $1.5m (£1.18m), after the Securities and Exchange Commission (SEC) identified significant failures in audits of Corporate Resource Services, which went bankrupt in 2015 after the discovery of $100m in unpaid federal payroll tax liabilities

Accounting / Charity review finds drop in reporting standards

A review by the Charity Commission of charity’s public reporting has shown a decrease in the number that meet the basic benchmark for audit quality, the first time that such reviews have found a ‘significant deterioration’

Audit / FTSE 100 and Big Four alumni survey 2018: who are the real power brokers?

Increasing focus on the quality of audit in the UK means that the Big Four audit firms are under severe pressure with threats of breakup and radical reform. In our exclusive annual FTSE 100 Big Four Alumni survey, Philip Smith analyses the inextricable link between UK boards and the top audit firms

Audit / Swabey: CMA review fails to address underlying problem with audit

The Competition and Markets Authority’s initial report on reforming the UK audit market ignores auditor independence and risks putting the cart before the horse, argues Peter Swabey, policy and research director at ICSA: The Governance Institute

Audit / Grunberg: three ghosts haunt audit market this Christmas

David Grunberg, founding partner of Grunberg & Co, mulls over the Competition and Markets Authority’s (CMA) review of the audit market and suggests that a change of heart over consultancy might be needed from the Big Four
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