Corporate governance

Audit / PwC fined $7.9m over audit independence failures

PwC is to pay $7.9m (£6.3m) to settle claims by the Securities and Exchange Commission (SEC) that the US firm and one of its partners violated auditor independence rules and engaged in improper professional conduct

Audit / FRC to hear Deloitte Autonomy complaint in October

The Financial Reporting Council (FRC) has set the date next month for the hearing of a formal complaint against Deloitte and two of the firm’s audit engagement partners concerning Autonomy Corporation

Audit / Quality of local authority audit under review

Practitioners who work in the local government sector and audit community are being urged to contribute to the government’s independent Redmond review into the quality and effectiveness of local authority audit

Audit / Sports Direct still looking for auditor

Following the Sports Direct AGM, there is no progress on the appointment of a new auditor after Grant Thornton resigned as the incumbent last month

Audit / Limits of audit - public perceptions and legal realities

Oliver Passmore, partner and Alex Horsbrugh-Porter, counsel at Ogier consider the far-reaching implications for the future of the audit industry and director duties in light of recent audit failures and legal rulings on the role of auditors

Audit / Cybersecurity tops list of business risks

Cybersecurity worries continue to top the list of risks currently facing businesses in nine European countries, but climate change is fast becoming a major concern, according to research from the Chartered Institute of Internal Auditors (Chartered IIA)

Accounting / EY resigns after issuing disclaimer on Datalex accounts

Auditors at EY have refused to give an opinion on the financial statements of Irish travel software firm Datalex, which disclosed ‘significant accounting irregularities’ earlier this year, and have reported the company to the regulator for failure to keep adequate accounting records

Audit / Majority of client companies dissatisfied with Big Four auditor

The Big Four look set to retain their stranglehold on large listed company audit even though over half of client companies do not rank their current auditor as their first choice

Audit / FRC boss warns reforms ‘may not address expectations’

Audit watchdog increases enforcement team by 25% during preparations for move to more powerful Audit, Reporting and Governance Authority as outgoing chairman warns reviews may not address all stakeholder expectations  

Audit / Hadfield: audit can add value for business owners

With the audit process under the microscope, Menzies audit partner James Hadfield argues the case that businesses can benefit from closer scrutiny if they resist the cheapest audit option

Audit / Joint audits: double the trouble?

In the wake of the ongoing audit reform inquiries, Katharine Bagshaw FCA unpicks the pros and cons of mandatory joint and shared audits in the UK, asking whether the lack of viable alternatives will force an unwelcome political solution

Audit / EY global chief admits ‘zero contingency’ for audit break up

Revealing record worldwide revenues of $36.4bn, Carmine Di Sibio has hit back at proposals in the UK for operational splits between the Big Four’s audit and consultancy practices

Accounting / HLB network signs up financial data analytics software firm

Mid-tier international accounting network HLB agrees strategic partnership with Inflo, a supplier of accounting data analytics, to provide improved and consistent service for clients around the world

Audit / Grant Thornton loses FTSE 250 Pantheon audit

Private equity investment trust parts ways with mid-tier audit firm after three decades following appointment of EY as new auditor from 2020

Audit / Audit updates: September 2019

In this month’s audit updates, KPMG is hit with £3.5m BNY Mellon fine, FRC fines hit record levels, firms required to report staff misconduct, BEIS clarifies Sports Direct auditor position, PwC quits Staffline audit but wins IHG audit, IESBA aims to strengthen scepticism, FRC consults on client assets while NAO revises Code of Practice