Corporate reporting

Audit / Audit work set to go to tech firms

Technology companies are set to challenge accountancy firms’ traditional dominance of the audit market, as client companies start to separate their audit into separate elements, according to analysis from Source Global Research which suggests Deloitte is the front runner for embracing this change

Audit / Global consultation on standards for improving audit quality

The International Auditing and Assurance Standards Board (IAASB) has opened a global consultation on three interrelated standards to improve quality management, which will bring significant changes in how accountancy firms manage quality for audits, reviews, and other assurance and related services engagements

Audit / The future of auditing: a cluttered horizon

Katharine Bagshaw FCA examines the future of auditing in light of a raft of UK investigations into quality, purpose and independence, the Monitoring Group's proposals to overhaul the international audit standard setters, and attempts to modernise auditing standards in an age of cross-border, digital multinational businesses, not to mention the audit needs of smaller entities

Audit / FRC calls for rewrite of Companies Act to improve audit

The head of the audit regulator, the Financial Reporting Council (FRC), is calling for a significant overhaul of the 2006 Companies Act as a way to reform the audit market, raise standards and restore public confidence in audit firms, which MPs described as 'tantalising'

Audit / £21m damages bill for Grant Thornton’s ‘flagrant’ audit failures

Grant Thornton has been ordered to pay an audit firm record of £21m in damages to former client AssetCo after a High Court judge branded its auditing of the company, which nearly collapsed as a result of an accounting scandal, to be a ‘flagrant breach of professional standards’, exhibiting failures ‘of the utmost gravity’

Audit / Audit updates: February 2019

In this month’s roundup of audit news, MPs probe Big Four and mid-tier firm heads about sustainability of audit, FRC consults on tougher stewardship code and changes to third country auditor fees due to Brexit, Carillion audit investigation to continue well into 2019, audit wins at SSE and ICG, while Aston Martin puts audit out to tender

Audit / Audit and consulting split would make Big Four less resilient

The heads of the Big Four firms have warned the Bsiness, Energy and Industrial Strategy (BEIS) committee that the Competition and Markets Authority’s (CMA) recommendation to split non-audit and audit services into separate entities would challenge the firms’ resilience as audit services only make up a small amount of fee income

Accounting / FRC consults on tougher stewardship code

The Financial Reporting Council (FRC) is consulting on an updated and tougher stewardship code which the regulator says sets substantially higher expectations for investor stewardship policy and practice

Audit / PCAOB faults half of KPMG US audits inspected

The Public Company Accounting Oversight Board (PCAOB) identified deficiencies in half of the audits it inspected at KPMG’s US firm in 2017, with concerns that there might not have sufficient audit evidence to support the firm’s opinion in some instances

Audit / Audit methodology: is it fit for purpose?

With auditors under heavy scrutiny and a litany of audit failures at listed companies, Sarah Perrin ACA asks whether the fundamentals of audit are actually working and how technology could improve the quality of audit

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