Corporate governance

Audit / Audit exemptions and size criteria explained

Considering whether an entity can qualify for an audit exemption can be complex. As the audit busy season approaches, Anne Cowley ACA cuts to the key requirements

Audit / ICAEW says tougher FRC sanctions bad for audit competition

Both ICAEW and the Institute of Chartered Accountants of Scotland (ICAS) have highlighted concerns that the significant increases in the sanctions available to the Financial Reporting Council (FRC) for lapses in auditing risk reducing competition in the market

Audit / FRC consults on effectiveness of auditing standards

The Financial Reporting Council (FRC) has launched a consultation to find out how effective the 2016 changes to ethical and auditing standards have been and whether further steps are now needed to improve the quality of auditing in the UK

Audit / Investment firms caution against Big Four break up

Investors want to see improvements in audit quality and are concerned about the current dominance of the Big Four, but are holding back from calling for a break up of the largest firms or a ban on the supply of non-audit services, according to the responses made to the first stage of the Competition and Markets Authority (CMA) review of the sector

Audit / Only 25% of public know the role of an auditor

Half of the UK public (48%) believe it is auditors who are responsible for avoiding company failures, but only a quarter can accurately identify what an auditor does, according to a survey by ACCA which says there is an urgent need for a wider debate about the role of accountants

Audit / FRC announces audit monitoring priorities

The Financial Reporting Council (FRC) has indicated it plans to focus on the use of audit quality indicators (AQIs) and applying technology in audits during its inspections for 2019/20, as the regulator released details of its thematic reviews, priority sectors and audit areas of focus

Audit / Redrow builds audit future with KPMG

FTSE 250 housebuilder Redrow has appointed KMPG as its auditor for the financial year commencing 1 July 2019, ending a 20-year relationship with PwC

Audit / Grant Thornton against separating audit and non-audit practices of Big Four

In its response to the Competition and Markets Authority (CMA) review, Grant Thornton has called for a ban on firms receiving non-audit fees from Public Interest Entity (PIE) clients however does not believe that splitting Big Four audit and non-audit practices will be an effective remedy

Audit / Field queries Insolvency Service refusal to reopen BHS probe

The chair of the work and pensions committee, Frank Field MP, is to meet later this month with Sarah Albon, chief executive of the Insolvency Service, to obtain further details regarding its refusal to reopen an investigation into the audit of BHS

Audit / BEIS committee begins inquiry into ‘broken’ audit market

The chair of the business, energy and industrial strategy (BEIS) committee has announced the launching of an inquiry into the future of audit, examining what steps need to be taken to restore public trust in the market

Audit / Deloitte calls for market cap and ban on non-audit services

In its response to the Competition and Markets Authority (CMA) review, Deloitte has called for an audit market share cap to address competition issues and a ban on firms selling non-audit services to audits clients

Accounting / PwC called in for forensic review of Yü Group accounts

Yü Group plc has called in PwC to conduct a forensic review following accounting irregularities at the AIM-listed supplier of gas and electricity to UK businesses 

Audit / Air Partner drops Deloitte for PwC auditors

Private jet operator Air Partner plc has ended a seven-year audit agreement with Deloitte as its external auditor and hired PwC after the FTSE 250 listed company reviewed its audit business

Audit / Landmark privilege rulings affect auditors and clients

What the Court of Appeal gives, the High Court takes away: two major decisions on legal professional privilege in the cases of ENRC v SFO and Financial Reporting Council v Sports Direct International plc have important ramifications for auditors and audit clients. Ross Dixon and Chris du Boulay at Hickman and Rose examine the decisions

Audit / Mazars calls for joint audits for UK listed companies

In Mazars' response to the Competition and Markets Authority (CMA) statutory audit market study, it says that it is ‘fully supportive of changes which propose to create a genuinely competitive audit market that addresses stakeholders’ needs’ and pushes for joint audits