Law and regulation

Audit / NAO consults on final stage of local audit code update

The National Audit Office (NAO) is seeking public feedback on proposed updates to its Code of Audit Practice, calling for greater focus on value for money in public bodies

Audit / BEIS clarifies position over Sports Direct auditor

Lawyers from Sports Direct have approached the Department for Business, Enterprise and Industrial Strategy (BEIS) to gain clarity on the role of BEIS following the resignation of auditor Grant Thornton

Audit / FRC consults on limited revisions to CASS standard

The Financial Reporting Council (FRC) has launched a consultation proposing limited revisions to the Client Assets Assurance Standard (CASS), which provides requirements and guidance for auditors who are have to report to the Financial Conduct Authority on an entity’s compliance with the CASS Rules

Audit / Audit updates: August 2019

In this month’s audit updates, Deloitte hit with £6.5m fine over Serco, Ferrexpo swaps Big Four auditor for MHA, ‘complexities’ delay Sport Direct results, BEIS audit market reform consultation, MPs concerns over FRC chair appointment, ethical standards and local authority audits both up for review

Audit / Two thirds of businesses say audit fails to meet needs of investors

PwC is calling for statutory audits to provide more information about companies’ risks and future prospects following research into audit effectiveness which found that the majority of businesses and investors criticise the current audit process

Audit / FRC revises Practice Note 19 for bank audits

The Financial Reporting Council (FRC) has issued a revision of Practice Note 19: The audit of banks and building societies, to reflect changes to auditing standards, and a significant rewrite to reflect the latest ISA 540 on disclosures 

Audit / Audit updates: July 2019

In this month’s audit updates, fines for PwC over Redcentric, KPMG refuses to retender $2.2m Cineworld audit, ICAEW finds one in four audits sub-standard, Gama Aviation ditches Grant Thornton and the Financial Reporting Council gets a new head of audit inspections on loan from the Bank of England

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

Audit / NAO issues guidance for audit committees on cloud services

The National Audit Office (NAO) has published guidance for audit committees on cloud IT services and their use in government, with suggested questions to ask at planning, implementation and management stages

Audit / FRC to be disbanded as government green lights new audit regulator

The Financial Reporting Council (FRC) will be closed and replaced with a new audit regulator following criticism of their effectiveness of the existing organisation following a string of audit scandals at major listed companies

Accounting / Essentials: Brexit changes to company law for accountants

The government is passing substantive legislative changes to Companies Act 2006 (CA 2006) via statutory instrument and has issued guidance letters for accountants and auditors with advice on how to operate cross-border in the event of a no deal Brexit. James Waller CA, technical writer at Croner-i Tax and Accounting, explains the key considerations

Audit / FRC consults on tougher going concern rules

The Financial Reporting Council (FRC) is consulting on plans to revise the International Standard on Auditing (ISA) (UK) 570 Going Concern, which will mean requirements for UK auditors will be significantly stronger than those required by international standards

Audit / Audit updates: March 2019

In this month’s round-up of audit news, FRC extends probe into Carillion audit, no deal Brexit advice for auditors, Vodafone drops PwC in swap to EY, BDO picks up £200k Halfords audit from KPMG

Audit / ISA (UK) 540 (Revised): scalability and audit of accounting estimates

The revised international auditing standard, ISA (UK) 540 (Revised) Auditing Accounting Estimates and Related Disclosures, attempts to improve scalability issues and treatment of accounting estimates as more complex forward analysis becomes available for financial reporters. Michelle Roberts CA, specialist audit writer at Croner-i Tax and Accounting, considers the judgment issues for auditors

Audit / Deloitte Japan fined $2m over independence failings

Deloitte’s firm in Japan is to pay $2m (£1.56m) to settle charges from the Securities and Exchange Commission (SEC) that it issued audit reports for a client at a time when dozens of its employees maintained bank accounts with the client’s subsidiary, in violation of the regulator’s audit independence rules
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