MPs launch inquiry into future of ‘broken’ audit sector November 12, 2018 A powerful parliamentary committee will launch an inquiry into the “broken” audit market today, aimed at ensuring an ongoing competition probe ends the “overwhelming market domination” of the Big Four. Labour MP Rachel Reeves will announce the inquiry – by the Business, Energy and Industrial Strategy (BEIS) Select Committee which she chairs – during a [...]
Insolvency Service to meet Frank Field over refusal to reopen BHS investigation November 11, 2018 Frank Field, chair of the work and pensions committee, will meet the Insolvency Service (IS) later this month after it refused to reopen its investigation into the collapse of BHS. The IS concluded its investigation, which saw Sir Philip Green escape a boardroom ban, in March but accounting watchdog the Financial Reporting Council (FRC) has [...]
Deloitte calls for audit market cap and ban on selling extra services to audit clients November 8, 2018 Two of the world’s biggest accountancy firms have backed a ban on UK auditors selling extra services to their audit clients, setting the stage for a huge shift in the embattled sector. Deloitte and KPMG – two members of audit’s Big Four – have backed the move, which would potentially put hundreds of millions in fee income [...]
KPMG will halt non-audit work on FTSE 350 clients in wake of Carillion November 8, 2018 KPMG is set to become the first of the so-called Big Four to cease all non-audit work for FTSE 350 clients in the wake of Carillion. The auditor will stop providing all but some essential non-audit services for the 90 FTSE 350 customers whose accounts it audits, it has told 625 UK partners in a [...]
Ban auditors from immediately selling new services to outgoing clients, says sector body November 6, 2018 Accountancy firms should be banned from immediately selling other services to lapsing audit clients, an industry body has said. The Association of Chartered Certified Accountants (ACCA) has told regulators they should consider introducing a “cooling off” period of two years, in which auditors are banned from the lucrative practice of selling additional products to firms [...]
Bosses should take blame for bad corporate reports, says Big Four’s EY November 4, 2018 One of the UK’s biggest audit firms has said top bosses and directors should take individual responsibility if their companies make errors in financial reports. EY, one of the Big Four audit firms, said regulators should adapt the US system of corporate responsibility, which stipulates C-level executives must personally confirm the integrity of their companies’ [...]
Stephen Haddrill steps down as FRC audit watchdog boss amid probe November 2, 2018 Stephen Haddrill, chief executive of the Financial Reporting Council (FRC), is stepping down amid a government probe into the watchdog’s operations. Haddrill has led the FRC, which monitors and regulates the audit sector, since 2009. The news comes in the wake of mounting pressure on the FRC, which has come under examination following several recent scandals within the UK’s [...]
Mark Kleinman: Financial Reporting Council must offer clarity on Haddrill’s future November 2, 2018 The 900 UK partners at PwC were unable to deduce much from a voicemail left for them this week by their boss, Kevin Ellis, about its plans for the future of the UK audit market. His message was “very top-level”, according to one person who heard it: the details of its blueprint, submitted to the [...]
Big Four accountant EY admits need for improved audit standards as UK revenues rise October 29, 2018 Accounting giant EY has said that standards must improve in the audit sector and welcomed an investigation by the Competition and Markets Authority into the scrutinised sector, as it reported increased UK revenue today. The figures EY’s fee income, equivalent to revenue, grew 2.7 per cent to £2.41bn for the financial year ending June. EY’s partners will [...]
Audit watchdog boss Stephen Haddrill set to step down amid probe October 28, 2018 The chief executive of the Financial Reporting Council (FRC), Stephen Haddrill, is reportedly preparing to step down amid a government probe into the watchdog’s operations. Haddrill is planning to leave within months, Sky News reported. He has led the FRC, which monitors and regulates the audit sector, since 2009. Citing an anonymous source, Sky said [...]