Mazars faces accounting tribunal over First Quench pension advice August 5, 2013 THE ACCOUNTANCY watchdog is investigating Mazars and the managing partner of its London office over pension advice given to the now-defunct drinks firm First Quench Retailing. The Financial Reporting Council has made a formal complaint about Mazars and partner Richard Karmel, claiming their conduct “fell significantly short of the standards reasonably to be expected”. The [...]
BAE up on Saudi hope August 1, 2013 SHARES in BAE Systems yesterday climbed to near the top of the FTSE 100, as the defence firm shrugged off a six per cent decrease in half-year earnings by signalling that it is close to sealing a long-awaited Saudi deal. The firm has been embroiled in pricing negotiations with Saudi Arabia over the purchase of [...]
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 mulls appeal as tribunal confirms MG Rover shortcomings July 29, 2013 A TRIBUNAL ruled yesterday that Deloitte fell short of ethical standards when advising MG Rover and four of its directors ahead of the car company’s collapse in 2005. Deloitte lost its appeal against the Financial Reporting Council’s ruling and is facing an unlimited fine, to be set out as early as today, as well as [...]
Chinese auditors launch urgent assessment of mounting debt July 29, 2013 THE CHINESE national audit office is to undertake a review of the government’s debts, following instruction from the government’s State Council, which is chaired by Premier Li Keqiang. The office released a one-line statement announcing the review. The People’s Daily, a Chinese communist party newspaper, followed with an article suggesting that the project may require [...]
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 [...]
Deloitte at MG Rover hearing July 28, 2013 DELOITTE will this week appear before a tribunal over its role as adviser during the collapse of MG Rover in 2005. The accountancy firm also advised four of Rover’s directors, known as the Phoenix Four, who bought the firm for £10 five years earlier. Deloitte and ex-partner Maghsoud Einollahi face unlimited fines if the tribunal [...]
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 [...]