FRC chief Jon Thompson to leave audit watchdog to lead HS2 project February 9, 2023 The head of the UK’s audit watchdog, Jon Thompson, is set to step down to take up a new position as the chair of HS2. Thompson has handed in his notice to leave his job as head of the Financial Reporting Council (FRC) and will now serve out his six-month notice period, Sky News first [...]
London firm Shipleys investigated over audit of Russian fintech Zaim Credit Systems January 18, 2023 The UK’s accounting regulator has launched an investigation into London accounting firm Shipleys over its audit work for the UK-listed holding company of Russian fintech firm Zaim Express. The Financial Reporting Council (FRC) said today that it has decided to open an investigation into the firm’s audit of Zaim Credit Systems’ 2021 accounts. The FRC’s [...]
Carillion: Five years on, MPs and industry leaders demand audit reform to ensure scandal is not repeated January 18, 2023 On the fifth anniversary of the collapse of outsourcer Carillion, MPs and audit sector leaders have united in calling on the UK government to push forwards with plans to overhaul the country’s audit sector. MPs said a shake-up of the country’s accounting industry is needed imminently to ensure that audit failures, such as the one [...]
Deloitte fined £1.25m over failings in building supplies firm’s audit December 22, 2022 The UK’s accounting watchdog today fined Deloitte and one of its senior auditors over failures in auditing the accounts of building products manufacturer SIG plc. Britain’s Financial Reporting Council (FRC) fined the Big Four accountancy firm £1.25m, discounted to £906,250 for admissions and early disposal, over its failure to apply sufficient professional scepticism in auditing [...]
UK’s audit watchdog calls on top accounting firms to boost measures against exam cheating December 21, 2022 The UK’s accounting watchdog has called on Britain’s seven largest auditors to improve the measures they have in place to prevent cheating on exams, following a series of international cheating scandals involving the world’s biggest audit firms. In a letter seen by City A.M., the UK’s Financial Reporting Council (FRC) called on the country’s top [...]
Fees paid to FTSE 100’s auditors hit record sums of more than £1bn December 20, 2022 The UK’s top 100 listed companies paid more than £1bn to their auditors for the first time in 2021/22, following a steady uptick in audit fees linked to a tougher stance from the UK’s accounting regulator. FTSE 100 companies paid a record £1.01bn to their auditors for both audit and non-audit services, in the year [...]
KPMG chief snubs global split as consulting arm drives growth in revenues December 13, 2022 The global head of KPMG today slapped down suggestions it might follow EY in pursuing a global split, in claiming the accounting firm’s strong financial performance “validates” its current approach. KPMG chief executive Bill Thomas rejected plans for a split in claiming the Big Four firm’s results “validates an unwavering commitment to deliver services… through [...]
KPMG’s failings led to Carillion’s collapse, High Court lawsuit says November 28, 2022 KPMG’s incompetence in its audits of Carillion played a core part in the construction giant’s 2018 collapse, Carillion’s liquidators have said, as part of a £1.3bn lawsuit against the Big Four accounting firm. KPMG’s 2016 audit of Carillion lulled the construction firm’s board into a false sense of security that saw the firm make a [...]
FRC fines hit record highs as watchdog sends ‘clear message’ to UK’s audit sector November 14, 2022 The UK’s Financial Reporting Council (FRC) fined auditors a record £33.3m in the year running up to 30 September 2022, new figures from Thomson Reuters Confirmation shows. The record high sum marks a 77 per cent increase on the £18.7m fines – after discounts and adjustments – handed out in the previous year. The [...]
UK’s new government should simply ‘get on’ with audit reform, letter to Rishi Sunak says November 4, 2022 The UK’s new government should simply “get on” with plans to overhaul the audit sector, to ensure the long-term stability and resilience of Britain’s economy, the head of one of the country’s largest accountancy sector trade bodies has said. In three separate letters to prime minister Rishi Sunak, business secretary Grant Shapps and chancellor [...]