New audit watchdog chair pledges tougher rules for company executives June 16, 2022 The new chair of the UK’s audit watchdog has vowed to make company directors accountable for corporate accounting scandals, in his first public speech as head of the Financial Reporting Council (FRC). FRC chair Sir Jan du Plessis said the government’s decision to water down plans for a British version of the USA’s “Sarbanes-Oxley [...]
ESG is moving to the heart of property portfolios June 7, 2022 The Covid-19 pandemic has accelerated the need to transform the spaces where we live, work and socialise. And it’s clear that commercial and residential developers and those working in property finance are becoming keenly focused on sustainability and affordability. Whilst environmental, social and governance (ESG) certainly isn’t new, its principles are vital and it’s imperative [...]
FRC slaps PwC and City partner Jonathan Hook with staggering £5m fine and severe reprimands June 7, 2022 The Financial Reporting Council said this morning the watchdog has fined auditor PricewaterhouseCoopers and one of its London partners more than £5m for their audit of two construction companies. The regulator said that PwC and audit engagement partner Jonathan Hook would also face severe reprimands. The fines are linked to the audit of Kier Group’s [...]
EY working to spin off its audit business in biggest shakeup of any Big Four firm in two decades May 27, 2022 EY is working on splitting its business in two, to separate out its audit and advisory operations. The accountancy firm is planning the biggest shakeup to the Big Four in two decades, by spinning off its audit business into a separate firm, according to the Financial Times. EY’s plans come as part of ambitious efforts [...]
KPMG fined £3.4m over Rolls Royce audit failings May 24, 2022 Big four firm KPMG has been fined £3.4m over its audit of Rolls Royce. The company was slapped with the penalty by the financial regulator over its failings to address problems at the company in a 2010 audit. This is the fourth fine imposed on KPMG in 2022 according to the FT. The Financial Reporting [...]
KPMG plans to hikes fees by up to 20 per cent due to higher cost of staffing May 19, 2022 Big Four accountancy firm KPMG has warned clients it is planning to substantially increase its audit fees, in order to pay for higher salaries. The auditor told its clients it plans to increase fees by between 5 per cent and 20 per cent due to facing higher costs linked to new industry rules and the [...]
UK’s audit sector trade bodies would not object to giving Big Four fines to the government May 19, 2022 Two of the UK’s biggest audit industry trade bodies have said they would welcome any plans to see money raised through fines against auditors given over to the UK government, in order to fund Britain’s regulatory bodies. The Institute of Chartered Accountants in England and Wales (ICAEW) and Association of Chartered Certified Accountants (ACCA) both [...]
KPMG faces record £14.4m fine after auditors misled watchdog during Carillion inspection May 12, 2022 KPMG is set to be hit with a record £14.4m fine after a tribunal found five of its former staff deliberately misled the UK’s audit watchdog by forging documents during routine inspections of their work. The tribunal heard the UK’s Financial Reporting Council (FRC) had agreed to reduce KPMG’s fine from a sum of £20m, [...]
UK’s accountancy sector turnovers soar to record highs May 12, 2022 The UK’s accountancy firms generated more cash in March than in any other month on record, new Office of National Statistics (ONS) figures show. Turnover in Britain’s accountancy sector jumped 14 per cent from February to March to record highs of £4.13bn. The multi-billion sum comes as a new high for the UK’s accountancy industry, [...]
UK watchdog launches probe into tiny accountancy firm King & King over Sanjeev Gupta audits May 4, 2022 The UK’s accounting watchdog has launched an investigation into four audits carried out by little-known accountancy firm King & King, of firms linked to embattled steel magnate Sanjeev Gupta. The Financial Reporting Council (FRC) said it would be probing King & King’s audits of financial results posted by four of separate companies linked to Sanjeev [...]