Regulator closes investigation into KPMG auditing of BAE August 1, 2013 The investigation into the conduct of KPMG as an auditor of British Aerospace/BAE is over. Launched in 2010, the Accountancy and Actuarial Discipline Board (AADB) was investigating the audits and professional services adviced provided during the period 1997 to 2007. Subsequent investigations have shown that proper assessment of KPMG’s conduct would require consideration of work [...]
Deloitte warns serious misconduct ruling could damage financial advisory industry July 29, 2013 Big four accountancy firm Deloitte has warned that a Financial Reporting Council (FRC) tribunal ruling it engaged in serious misconduct when it advised the owners of MG Rover in 2000 over two transactions could damage the financial advisory industry. City A.M. understands that Deloitte will make an interim payment of £1.75m, with the final figure [...]
Watchdog sets out plans to shake up accountancy July 22, 2013 THE COMPETITION Commission has stopped short of forcing companies to regularly change their auditor, in a package of planned reforms that has split the accountancy profession. Smaller auditors yesterday called for the watchdog to go further, while the so-called Big Four firms warned of the red tape that could come with plans to force FTSE [...]
Don’t underestimate proposed changes to the UK audit market July 22, 2013 THE COMPETITION Commission’s proposals represent a more potent solution than may first meet the eye. We are very supportive of those remedies that aid competition, increase transparency between auditor and shareholders and, most vitally, improve audit quality. We think that the moves to increase transparency between the regulator, auditors, audit committees and shareholders are positive [...]
Compulsory audit tenders could cost consumers quality, money and competition July 22, 2013 The Competition Commission (CC) has shied away from compulsory auditor switching, instead pushing for mandatory tenders every five years, in an attempt to break up the big four (PwC, Deloitte, Ernst & Young, KPMG). FTSE 350 companies should put their statutory audit engagement out to tender at least every five years. Companies may defer this [...]
Watchdog will probe accounts for Autonomy February 11, 2013 THE ACCOUNTING watchdog has opened a probe into former FTSE 100 software firm Autonomy’s accounts for the years leading up to its controversial takeover by Hewlett-Packard. The Financial Reporting Council said yesterday it will look at Autonomy’s reporting between 1 January 2009 and 30 June 2011, shortly before the $11.1bn (£7bn) offer from HP was [...]
Auditor Ernst & Young cleared over Lehman January 29, 2013 ERNST and Young will not face any action relating to its work with Lehman Brothers in the year before the bank’s collapse, the Financial Reporting Council ruled yesterday. The Big Four auditor had faced claims it had been too lenient on the bank, signing off their reports into its European arm despite Lehman breaking the [...]
Watchdog says boards should look for risks on the horizon January 29, 2013 COMPANY boards and auditors need to be more vigilant about long-term risks to financial health, according to tighter rules from the Financial Reporting Council written in the wake of the credit crisis. The FRC said today it wants directors to consider threats to their business models and capital levels at least a year into the [...]
Audit watchdog hikes business levy by 8.5pc January 22, 2013 THE UK’S audit watchdog has announced plans to hike levy rates by 8.5 per cent. The Financial Reporting Council (FRC)’s move was criticised by firms yesterday but the regulator said the increase was necessary as it attempts to clear a backlog of cases and deals with extra regulation. The FRC is upping its budget by 10 [...]
Auditors need to pitch again every 10 years September 27, 2012 BRITAIN’S biggest companies should put their audit contracts out to tender at least once a decade, the Financial Reporting Council said as it set out a major overhaul of its guidance today. The regulator also calls on boards to end the practice of trumpeting positive news in annual reports, while keeping other figures hidden among [...]