Corporate governance

Audit / Audit exemption saves £4.6bn but adoption rates low

Changes to the small companies audit exemption introduced in 2012 have only been taken up by a third of eligible companies although for those early adopters savings are an estimated £4.6bn overall taking into account time and money spent on audit services and internal financial activity

Audit / ICSA and Investment Association drive to improve board engagement

Governance leaders in UK business and investment are launching a joint project to provide guidance on how the boards of the UK’s top companies can better reflect the views of their employees and other stakeholders in their decision making, with the aim of issuing voluntary guidance ahead of the outcome of a government consultation on improving governance

Accounting / US lawyer Clayton to head up SEC

President-elect Donald J Trump has nominated Jay Clayton as chairman of the US Securities and Exchange Committee (SEC), to take over from incumbent Mary Jo White

Audit / Woolf: monetary sanctions useless in isolation

Monetary punishments for the misdemeanours of banks must be supported by meaningful changes to the audit oversight and corporate governance, says Emile Woolf FCA

Audit / NAO slates lack of transparency in DfE academy accounting

The Department for Education (DfE) has been criticised for the  ‘truth and fairness’ over the reporting of academy finances in the  year end accounts for 2015-16 as well as a £291m overspend over building projects, reports Sara White

Audit / Legal & General ends 31-year PwC audit relationship

FTSE 100 insurance giant, Legal & General Group plc plans to switch auditor from the incumbent PwC to KPMG after over three decades with the Big Four firm in a three-way pitch

Audit / Rolls-Royce hires PwC for £5.9m audit

PwC has picked up the audit contract for Rolls-Royce Holdings plc after a 26-year long audit relationship with Big Four rival KPMG

Audit / US audit watchdog hits Deloitte Brazil with $8m penalty

The Public Company Accounting Oversight Board (PCAOB) has hit Deloitte’s Brazilian firm with a record $8m (£6.3m) civil penalty for ‘some of the most serious misconduct it has ever uncovered’, including the issuing of materially false audit reports and attempting to cover up audit violations by improperly altering documents and providing false testimony

Audit / Changing audit: commoditisation and complexity

Audit is a dynamic discipline and changes in the pipeline are likely to have a significant impact on audits of all sizes as technical complexity means that audit is becoming increasingly specialised while threshold changes is reducing the number of mandatory audits. Audit specialist Katharine Bagshaw FCA reviews the current audit landscape 

Accounting / Government tightens rules for £100K grants to counter fraud

After a series of scandals surrounding abuse of the government grant system, the Cabinet Office has issued a rigorous set of rules to tighten up the approval process and ensure strict oversight of government grants to charities and commercial organisations

Audit / Audit updates: December 2016

In our monthly roundup of developments in audit and governance, IAASA consults on auditing framework for Ireland in FRC handover, PwC faces FRC tribunal over Connaught, IFRS revenue recognition hit for Rolls-Royce

Accounting / Conflict minerals regulation introduced in EU

All but the smallest EU importers of conflict minerals will have to conduct due diligence checks on their suppliers, and big manufacturers with more than 500 employees will also have to disclose how they plan to monitor their sources to comply with new EU rules

Audit / EY lands Shroders audit as asset manager ends 57-year PwC tenure

FTSE 100-listed global asset manager Shroders has confirmed EY as its auditor after 57 years with PwC

Audit / Woolf: revenue recognition rule change tortuous

A handover of powers to professional accounting institutes has exacerbated a lack of accountability while changes to revenue recognition rules simply make accounting more complicated, warns Emile Woolf FCA

Audit / Woolf: shadow of 2008 still looms over auditors

As defined benefit pension schemes enter negative territory, Emile Woolf FCA calls for an overhaul of pension fund audits in a bid to improve levels of governance and oversight