Corporate reporting

Audit / Woolf: same fraud, bigger cakes

From crumbs to corporate collapse, the way fraudsters cook the books has changed little, although the ingredients have become far from immaterial, warns Emile Woolf

Audit / FRC strengthens auditing standard ISA 315

The Financial Reporting Council (FRC) has revised its standard for the identification and assessment of risks of material misstatement in an audit of financial statements, with the aim of introducing a more robust and consistent approach

Audit / GT fined £3m over audit ethics failures

The Financial Reporting Council (FRC) has hit Grant Thornton UK with a £3m fine, discounted to £1.95m, over a series of ethical and independence failures in its auditing of Conviviality Retail, part of the collapsed alcohol wholesaler and retailer group

Audit / FRC gives four-year deadline for Big Four audit separation

The Financial Reporting Council (FRC) has given PwC, EY, KPMG and Deloitte four years in which to agree to operational separation of their audit practices, in a bid to drive up audit quality and end what the regulator dubbed ‘persistent cross subsidy’ from the rest of the firm

Audit / Audit firms ‘respond appropriately’ to Covid-19 going concerns

Audit firms have responded appropriately to the need to enhance their evaluation of companies’ going concern assessments during the Covid-19 emergency, and the additional measures are being applied consistently, according to the Financial Reporting Council (FRC)

Audit / NAO warning to MoD over aircraft carrier costs

The National Audit Office (NAO) has published the latest in a series of challenging reports on defence procurement, highlighting how significant uncertainties over the future costs of plans to bring new aircraft carriers into service may limit their effectiveness

Audit / FCA censures Redcentric over misleading financial information

IT services provider Redcentric has been given a public censure by the Financial Conduct Authority (FCA) for committing market abuse and ordered to pay £11.4m compensation to investors, while three former executives face legal proceedings

Audit / NAO offers guide on good practice in Covid-19 financial reporting

The National Audit Office (NAO) has published a guide to help audit and risk committees of government departments and arms-length bodies advise their organisations on financial management and reporting during, and in the period immediately after, the Covid-19 outbreak

Audit / FRC probes three firms over London Capital & Finance audits

Three audit firms – PwC, EY and Oliver Clive & Co – are facing a Financial Reporting Council (FRC) investigation into their auditing of London Capital & Finance (LC&F), a mini-bond investment specialist which collapsed last year amid controversy over the regulation of its high-risk products

Audit / NAO deepens analysis of £1.7 trillion government spending

The National Audit Office (NAO) reviewed £1.7 trillion of government expenditure over the past year, and reports its work led to positive financial impacts of £1.1bn

Audit / Wirecard says disputed €1.9bn ‘may not exist’

Beleaguered German payments fintech Wirecard has been forced to admit that €1.9bn (£1.7bn) of funds which auditors EY reported as ‘missing’ may never have existed, while its former CEO has been arrested on possible fraud charges

Audit / NAO warns government over infrastructure contract expiry costs

Important infrastructure including roads, hospitals and schools could return to the public sector in an unsatisfactory condition and services could be disrupted when a slew of private finance initiative (PFI) contracts end in five years’ time, because the government lacks a consistent and strategic approach to managing the financial risks involved, the National Audit Office (NAO) has warned

Audit / British Tourist Authority rapped over unauthorised procurement

The National Audit Office (NAO) has qualified the accounts of the British Tourist Authority (BTA) for the third year in a row, due to repeated and ongoing issues with irregular procurement activities and failure to secure government approval for more than £1m of unauthorised payments

Audit / KPMG, PwC face FRC probe over Eddie Stobart Logistics

The Financial Reporting Council (FRC) has launched two investigations into the audits of Eddie Stobart Logistics, one looking at KPMG’s work for the year ended 30 November 2017 and the other examining PwC’s auditing for the year to 30 November 2018  

Audit / Covid-19: government spend tops £124bn

The government has spent £124.3bn on programmes, initiatives and spending commitments in response to the pandemic, according to initial analysis from the National Audit Office (NAO)

Technical Alerts

Accountancy & Audit / IASB publishes agenda papers

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