Audit / FRC fines Grant Thornton £2.3m over AssetCo audit failures

The Financial Reporting Council (FRC) has fined Grant Thornton UK £2.275m and given retired partner Robert Napper a three-year ban and a £130,000 fine after its investigation identified a range of ‘widespread and significant’ failings in work on the audits of AssetCo plc, a provider of  outsourced fire and rescue services and equipment

Audit / Vectura Group prescribes KPMG to replace Deloitte as auditor

FTSE 250 pharmaceutical specialist the Vectura Group, which supplies products for the treatment of lung disease, is to appoint KPMG as external auditor from the 2017 financial year, replacing incumbent Deloitte after a decade

Audit / Internal auditors critical to cyber security response

The Chartered Institute of Internal Auditors (CIIA) says a spate of recent high-profile data breaches and the introduction of new regulations mean internal audit has a critical role in providing advice and assurance around cyber security

Audit / Revised guidance for charity auditors on material significance

The three UK charity regulators have issued new joint guidance setting out what auditors and independent examiners must report, including a revised list of matters of material significance

Audit / KPMG US removes head of audit for ‘improper’ warnings

The head of the audit practice at KPMG’s US firm, along with four other partners and one employee, have been asked to leave after it was discovered they had received improper advanced warning of regulatory inspections by the Public Company Accounting Oversight Board (PCAOB)

Audit / KPMG takes over from PwC as Micro Focus auditor

FTSE 100 global infrastructure software business Micro Focus International is to replace current external auditor PwC with KPMG for the year ending 30 April 2017, ending a contract worth $6.2m (£4.9m) after 12-years

Audit / EU auditors seek standard definitions

The European Commission uses too many performance measures to assess how EU member states plan their spending, and a number of important definitions for financial reporting are not consistent, according to a report from the European Court of Auditors (ECA)

Audit / Ireland confirms switch to FRC auditing framework

Ireland has adopted the Financial Reporting Council (FRC) auditing framework for the UK, following feedback on the Irish Auditing and Accounting Supervisory Authority’s (IAASA) consultation over which existing audit framework should be adopted by Ireland

Tax / Lycamobile in £26m VAT dispute with HMRC

KPMG auditors were ‘unable’ to form an opinion on the accounts of international phone call business Lycamobile UK, while it is also facing a £26m VAT dispute with HMRC, latest filings with Companies House show

Audit / Audit updates: April 2017

In our monthly roundup of developments in audit and governance, PwC faces Redcentric audit probe, FRC investigates Connaught leak, Standard Life merger leaves audit issue, Radian Capital drops Deloitte for BDO

Audit / Ex-Deloitte Brazil execs banned over misleading audit

The former chairman and the former chief executive officer of Deloitte’s Brazilian arm, Touche Tohmatsu Auditores Independentes, have both been given bans and fined for their failure to cooperate with a Public Company Accounting Oversight Board (PCAOB) investigation into audit violations at one of the firm’s clients

Audit / FRC embarks on review of sanctions

The Financial Reporting Council (FRC) has commissioned an independent review of the sanctions it imposes under its enforcement procedures, with a focus on its financial penalties after ‘some very public accidents’

Audit / Woolf: audit standards overload with IFRS 16 Leases

The onslaught of complex IFRS standards,particularly the IFRS 16 Leases overhaul and IFRS 7 requirements, pushes disclosure to the extreme, but for what purpose, asks Emile Woolf FCA

Accounting / Culture, financial controls and risk management in a Brexit world

Organisational culture has consistently been the business topic of recent months. Its influence on risk, and its relevance for regulators and investors, is becoming increasingly tangible. Malcolm Finn, financial controller at Costa Coffee and Mike Cowan, head of finance 4.0 at EY consider the significance of culture in the context of the organisation's finance function, and how culture is key to overall risk management

Audit / Testing the safety net: insurance audit and PN20

Moore Stephens insurance sector partner Tom Reed examines Practice Note 20 which refreshes rules around materiality and reporting under Solvency II following withdrawal of Practice Note 24