Corporate governance

Audit / EXCLUSIVE: FTSE 250 audit fees exceed £200m for first time

Amid falling quality and a lack of competition, audit fees for FTSE 250 companies increased 6% in the last year, hitting £203.6m, in a market dominated by the Big Four audit firms, according to exclusive research by Accountancy Daily

Audit / FTSE 250 Auditors Survey 2019

In the exclusive Accountancy Daily survey of the FTSE 250, the stranglehold of the Big Four auditors on the £274m audit market highlights a complete failure to create a competitive audit market, with mid-tier firms standing on the sidelines, failing to grasp more than a handful of opportunities. Philip Smith analyses current audit fees, non-audit services and tender activity, assessing whether the market can be reformed 

Audit / Audit updates: June 2019

In this month’s audit updates, FRC reveals final plan and budget, KPMG in £5M Co-Op Bank fine, Mazars bags Goldman Sachs audit, ‘opinion shopping’ hides red flags, Laura Ashley audit fines, Anglo American ditches Deloitte and IAASB consults on audit simplification

Tax / Regulatory oversight of crypto assets fragmented, says FSB

The Financial Stability Board (FSB) has published a report on crypto assets, focusing on work underway, regulatory approaches and potential gaps, warning that regulators are taking a divergent approach

Audit / Gama Aviation flips auditor in switch to PwC

AIM-listed global aviation services company Gama Aviation plc has switched auditor, moving to a Big Four firm as it ends its audit engagement with mid-tier firm Grant Thornton after five years

Audit / Head of AQI inspections replaced by PRA's David Rule

The Financial Reporting Council (FRC) has confirmed that Mike Suffield, acting executive director of audit and actuarial regulation is to step down after a year in post, with a central banking regulator seconded to head up audit firm monitoring and supervision

Audit / FRC overhaul sees plan to hire 80 staff as budget increases

The Financial Reporting Council (FRC) is to increase its budget significantly in 2019/20 to £37.8m and plans to hire additional staff to improve its oversight and monitoring of audit firms, and support its transition to a new regulatory body

Accounting / Accountancy bodies ramp up anti money laundering oversight

Regulatory bodies, including HMRC, ICAEW and ACCA, have identified 42 businesses as having potential compliance failings in customer checks, record keeping and identifying risk

Audit / Over a third of audits fail quality test, says IFIAR

One in three audits carried out by member firms of the six largest global audit networks are judged deficient in some way with fair value judgment frequently cited as a key problem area, finds global audit regulatory forum

Audit / Audit and quality management: ISQM 2 – part 3

In the third part of our series on reforms to auditing standards, Katharine Bagshaw FCA examines the exposure draft on International Standard on Quality Management (ISQM 2) Engagement Quality Reviews, including its applicability for smaller firms

Audit / Only one in four understand role of auditors

Only one in four people in the UK know what an auditor does, compared to a worldwide average of one third, while over half of those in an ACCA poll believed it is auditors who are responsible for avoiding company failures

Audit / ‘Opinion shopping’ for auditors reduces business red flags

Over half of US businesses facing financial problems go ‘opinion shopping’ for auditors to try to override unfavourable going concern opinions at the expense of auditor independence and investor interests, a US study has found

Audit / Law firms fail to tackle money laundering robustly

A significant number of law firms are not doing enough to prevent money laundering, with some falling seriously short, leading to disciplinary action by the regulator

Audit / FRC fines MSR Partners £825k over deficient Laura Ashley audit

The Financial Reporting Council (FRC) has fined MSR Partners (formerly Moore Stephens LLP) and Stephen Corrall, audit engagement partner, in relation to an audit of fashion and homeware retailer Laura Ashley, which the regulator said was  ‘deficient in numerous respects’

Audit / Swabey: fundamental problem with audit needs urgent reform

Attempts to improve audit and scandal-proof the audit process will be futile unless the basic issues of education, training and trust are first addressed, while simply forcing challenger firms into the mix will not solve the fundamental problem, argues Peter Swabey, policy and research director at ICSA: The Governance Institute