Law and regulation

Audit / FRC fines Deloitte £4m over audit failings at Aero Inventory

Deloitte has been fined £4m by the Financial Reporting Council (FRC), the highest ever imposed by the regulator, at the conclusion of a long-running investigation into the firm’s failures in relation to the audit of the AIM listed company Aero Inventory and its subsidiary Aero Inventory (UK) Ltd for the financial years ended 30 June 2006, 2007 and 2008

Audit / PwC and former partner set for FRC disciplinary tribunal over Connaught audit

PwC and a now-retired former audit partner Stephen Harrison are set to appear before the Financial Reporting Council’s (FRC) disciplinary tribunal in November over the audit of Connaught

Audit / FRC issues revised ISA 800 and 805 for audit of Solvency II returns

The Financial Reporting Council (FRC) has issued revised International Standards of Auditing, ISA (UK) 800 and ISA (UK) 805 covering financial statements for the insurance sector

Audit / AAPA dropped as recognised supervisory body for audit

The Financial Reporting Council (FRC) has decided to revoke the recognition of the Association of Authorised Public Accountants (AAPA) as a recognised supervisory body (RSB) for audit with effect from 31 December 2016

Accounting / Brexit could see slimmed down Financial Reporting Council

The process of leaving the EU could lead to a diminution of the reach and power of the Financial Reporting Council (FRC) as its scope of influence may well be reduced in the longer term, says Matthew Stallabrass, partner in the corporate team at Crowe Clark Whitehill

Audit / PwC US settles with Taylor Bean & Whitaker over Colonial BancGroup audit

An out-of-court settlement has been reached between PwC’s US arm and collapsed mortgage lender Taylor Bean & Whitaker (TBW), following a multi-billion dollar fraud involving a bank which the firm audited

Audit / FRC fines PwC £2.3m over defective Cattles audit

PwC has been fined £2.3m by the Financial Reporting Council (FRC) over failures in its audit of sub-prime lender Cattles and its operating subsidiary Welcome Financial Services Ltd (WFS), while former audit partner Simon Bradburn has been severely reprimanded and given a £75,000 fine

Audit / PwC US faces record $5.5bn legal claim

PwC’s US arm is facing the biggest ever legal challenge involving auditors, in a record $5.5bn (£4.25bn) case relating to the collapse of mortgage lender Taylor, Bean & Whitaker (TBW) following a multi-billion dollar fraud involving a bank which the firm audited

Audit / BEIS confirms FRC status as audit competent authority post-ARD

Following introduction of the EU audit regulation and directive (ARD) in June, the Department for Business, Energy and Industrial Strategy (BEIS) has issued guidance on audit regulatory responsibilities in the UK confirming the Financial Reporrting Council's (FRC) status as competent authority

Accounting / EY could face Irish regulator over Anglo Irish Bank audit

EY looks set to face a renewed investigation by the Irish accountancy regulator into its role as the former auditor of Anglo Irish Bank (AIB), following the conclusion of a lengthy trial of three executives at the bank and another financial institution, who were convicted of a €7.2bn (£6.07bn) accounting fraud involving circular loans

Audit / EU to replace audit oversight body with CEAOB

The European Commission has disbanded the European Group of Auditors’ Oversight Bodies (EGAOB) and plans to replace it with a new pan-European oversight body, the Committee of European Auditing Oversight Bodies (CEAOB), to enforce the Audit Regulation and Directive (ARD)

Audit / FRC rolls out first audit firm governance code

The Financial Reporting Council has issued a revised Audit Firm Governance Code, which it claims ‘sharpens purpose and enhances transparency’ and is the first time a stand-alone guide for auditors has been available

Audit / FRC criticised over ‘inexplicable’ decision on HBOS audit investigation

The Financial Reporting Council’s (FRC’s) failure to take regulatory action sooner following the failure of HBOS has been strongly criticised by the Treasury select committee, which says its original decision not to investigate the auditing of the bank was ‘a serious mistake’, labelling its response ‘inexplicable’ and ‘unacceptable’

Audit / FRC State of the Nation report reveals extent of ongoing investigations

The Financial Reporting Council (FRC)’s inaugural State of the Nation report has highlighted the number of ongoing investigations into suspected misconduct in statutory audits

Audit / FRC to investigate KPMG over HBOS audit

The Financial Reporting Council (FRC) has announced it will be holding an investigation under the accountancy scheme into the conduct of KPMG’s audit of HBOS for the year ended 31 December 2007, after coming under severe criticism for failing to take action sooner to examine the Big Four firm’s role in the run up to the bank’s collapse