FRC: Auditors must challenge management view of firm implications of climate change November 10, 2020 Audit watchdog the Financial Reporting Council (FRC) has said auditors should test and challenge board and management’s assessment of the implications of climate change outlined in financial statements. Following a major review of how companies and auditors report on the impact of climate change, the FRC determined that boards and companies, auditors, professional associations, regulators [...]
KPMG to sell restructuring arm to win more work November 9, 2020 Audit giant KPMG is to sell its restructuring arm because conflicts of interest and regulatory scrutiny are preventing it from winning work. In an email to colleagues KPMG UK chairman and senior partner Bill Michael said that concerns relating to conflicts of interest arising from its existing work was likely to “limit the restructuring clients [...]
Deloitte fined for pension scheme audit failures November 6, 2020 Big Four firm Deloitte has been fined £362,500 for failures relating to the audit of a former client’s defined benefit (DB) pension scheme and the carrying value of the company’s intangible assets. The Financial Reporting Council (FRC) described the former client as one of the largest local and regional multimedia organisations in the UK responsible [...]
Watchdog slams Grant Thornton over ‘unacceptable’ public sector audits October 30, 2020 The accounting watchdog has criticised Grant Thornton over its ‘unacceptable” record on public sector audits, after five out of six of the firm’s local audits were found to fall below the expected standard. The Financial Reporting Council (FRC) singled out Grant Thornton and Mazars for criticism following a review of 15 major audits of health [...]
KPMG considering sale of UK restructuring business October 22, 2020 KPMG is considering selling its UK restructuring business as the accounting giant looks to shore up its finances after delaying its annual results amid the disruption caused by Covid-19. The firm is exploring options for the division including a possible sale as the Big Four accountants prepare for extensive reforms of their business to comply [...]
MPs demand update on audit reform progress from business secretary October 21, 2020 An influential committee of MPs has written to business secretary Alok Sharma to demand an update on the government’s progress implementing audit reforms following a series of high-profile accounting scandals. In a letter dated yesterday, Business Energy and Industrial Strategy (BEIS) committee chair Darren Jones asked Sharma to outline which reforms recommended by two recent [...]
Accounting watchdog floats strengthening auditors’ obligation to spot fraud October 21, 2020 The UK’s accounting regulator has proposed increasing the requirements on auditors to detect fraud in company accounts following a spate of high-profile accounting scandals. The Financial Reporting Council (FRC) has launched a review into the international accounting standard outlining auditors’ responsibilities to identify fraud. The watchdog is proposing revisions to the standard to provide “increased [...]
Eddie Stobart drives logistics group GWSA back to profitability October 12, 2020 The holding group behind logistics firm Eddie Stobart today said it had swung back to profitability in the first half of the year as it cashed in on higher demand for transport services during the Covid-19 crisis. Green White Start Acquisitions (GWSA), which also controls iForce, The Pallet Network and The Logistics People, reported revenue [...]
Get ahead with a NED? How non-executive directors have evolved October 9, 2020 ‘You cannot rely on others to seek you out – you must put in a concerted effort to obtaining a directorship. So network, wear out the shoe leather and be prepared to drink a lot of coffee’: so advises a guide for senior professionals seeking to become a non-executive director (NED). Spencer Stuart, the executive search and [...]
FRC delays appointment of Keith Skeoch as interim chair October 1, 2020 The appointment of City veteran Keith Skeoch as chair of the audit watchdog has reportedly been delayed despite having been signed off by the business secretary. The plan to name Skeoch as interim chair of the Financial Reporting Council has been delayed due to a failure in Whitehall to rubber-stamp the appointment, according to Sky [...]