Corporate reporting

Audit / KPMG global chairman apologises for South Africa scandals

KPMG’s global chairman, John Veihmeyer, has issued an apology after the firm faced criticism over its audit work for the Gupta family and a separate report it produced for the South African Revenue Service

Audit / KPMG loses 18-year audit contract amid Gupta scandal

Sasfin Holdings, a South African banking and financial services group, has dropped KPMG as its auditor after 18 years citing ‘well-publicised concerns,’ as the firm faces criticism over its audit work for the Gupta family and a separate report it produced for the South African Revenue Service

Audit / Sanctions and ethics: is the audit regulator fit for purpose?

Fines for audit failures may be increasing with PwC landed  a record £5.1m fine for the RSM Tenon audit, and another £5m for failures over Connaught, while Deloitte was given a £4m fine for Aero Inventory audit failures and Grant Thornton a £2.2m fine for AssetCo but there are serious questions about the scale and size of penalties, how they are dished out and the rationale for how the audit regulator, the Financial Reporting Council (FRC) sets them. Calum Fuller reports

Audit / NAO publishes cyber security risk guidance for audit committees

The National Audit Office (NAO) has published cyber security and information risk guidance for audit committees, after identifying a high incidence of access-control weaknesses and other issues in the course of preparing its reports

Audit / Charity Commission warning on auditor concerns

Nearly 100 charities, with a collective total income of some £195m, filed accounts last year that included a formally modified audit opinion, suggesting they could be material misstated, according to analysis by the Charity Commission which warns trustees and auditors need to address the concerns more proactively

Audit / Diploma ends 10-year Deloitte audit contract with move to PwC

FTSE 250 life sciences specialist Diploma is to change auditor with the appointment of PwC as its auditor for the financial year ending 30 September 2018, subject to shareholder approval at the 2018 AGM

Audit / Audit updates: September 2017

In our monthly roundup of developments in audit and governance, BBC switches audit to National Audit Office (NAO), Deloitte Mitie misstatement investigation, EY scoops Tate & Lyle audit

Audit / Big data and audit analytics: data driven, tech-enabled auditing – part 2

In part two of a big data series, Katie Houldsworth, partner on the Deloitte UK audit executive and Katie Canell, director of audit innovation at Deloitte, examine the role of data driven, tech-enabled auditing, how the use of data analytics is changing the shape of audit and the challenge to recruit specialist staff

Audit / SEC fines KPMG £4.8m over energy company audit failures

KPMG is to pay more than $6.2m (£4.8m) to settle charges brought by the Securities and Exchange Commission (SEC) that it failed to properly audit the financial statements of Miller Energy Resources, resulting in investors being misinformed about the company’s value

Audit / FRC hits PwC with record £5.1m fine over RSM Tenon audit

The Financial Reporting Council (FRC) has given PwC a £5.1m fine - its largest ever – and a severe reprimand for what the regulator termed ‘extensive’ misconduct in the audit of the financial statements of RSM Tenon Group, for the financial year ended 30 June 2011

Audit / Crowe Clark Whitehill remains top of charity audit league table

The UK’s largest charities paid out £69.4m in audit fees last year, with Crowe Clark Whitehill winning the biggest share for the ninth year running, according to the 2017 Charity Financial league table

Audit / US regulator sanctions Crowe Horwath HK

Crowe Horwath’s Hong Kong firm has been sanctioned and its registration revoked by the Public Company Accounting Oversight Board (PCAOB) for refusing to cooperate with the US regulator’s investigation of the firm's audits of a China-based issuer

Audit / EY takes on Tate & Lyle audit from PwC

Food producer Tate & Lyle is to switch auditors to EY, ending a 28-year relationship with PwC, following a competitive tender process earlier this year

Audit / Call for ‘courageous’ extended audit reports

ICAEW is calling for more support for extended audit reports, warning that the response to audit scandals such as Tesco and Rolls Royce has the potential to affect the development of audit

Audit / $1m fine for PwC over Merrill Lynch broker audit failure

The Public Company Accounting Oversight Board (PCAOB) has censured PwC and imposed a $1m (£760,000) penalty for audit violations related to the firm’s failure to observe the customer protection rules required by the Security and Exchange Commission (SEC) in its examination and audit of the broker-dealer Merrill Lynch, Pierce, Fenner & Smith