Law and regulation

Audit / Higgins: FRC dropping Tesco probe not a sign of weakness

The Financial Reporting Council (FRC) may have called off its investigation into PwC’s audit of Tesco accounts, but as the regulator's investigation into the audit of BT illustrates, it should not be seen as a let-up of the its focus on the larger accountancy firms, says Jenny Higgins, senior associate at law firm Kingsley Napley 

Audit / Evans: more transparency needed on FRC fines

Helen Evans, barrister at 4 New Square Chambers, examines the recent acceleration of fines imposed by the FRC Disciplinary Tribunal, and what it means for the future

Audit / AQI 2017: PwC pulled up over compliance with ethical requirements

The Financial Reporting Council (FRC) has highlighted concerns over shortfalls in compliance with ethical requirements and in the audit work carried out by PwC, the regulator’s 2016/17 Audit Quality Inspections (AQIs) show

Audit / Charity reporting: rule changes on reporting material significance

Joanna Pittman, partner at  Sayer Vincent, reviews compliance issues under new charity reporting regulations concerning matters of material significance, which are effective 1 May 2017 regardless of the accounting period being reported on

Audit / Editor’s comment: auditors feeling the heat

In reflect of this month’s exclusive FTSE 250 auditor’s survey, Sara White considers audit failures on the back of the record £5m fine given to PwC by FRC and ask whether the audit regulator is effective enough 

Audit / Aspects of Connaught ‘unauditable’, FRC case report finds

Elements of the information available to PwC over the course of its term as Connaught’s auditor were ‘unauditable’, according to FRC’s report on the case 

Audit / FRC to investigate KPMG audits of Rolls-Royce

The Financial Reporting Council (FRC) is to investigate KPMG over its auditing of the Rolls-Royce Group, after the manufacturer agreed to pay some £500m to the Serious Fraud Office (SFO) earlier this year as part of a deferred prosecution agreement (DPA) relating to bribery and corruption claims, the highest ever enforcement action against company in the UK for criminal conduct

Audit / PCAOB and KPMG challenged over Wells Fargo reporting

The Public Company Accounting Oversight Board (PCAOB) is under pressure from influential US senators to review KPMG’s auditing of Wells Fargo in the wake of discoveries that the bank’s employees were setting up millions of extra customer accounts without authorisation in order to claim sales incentives

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 / 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 / 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

Audit / FRC to investigate own member over Connaught leak

The FRC has launched an internal investigation after a member leaked information about the regulator’s investigation into PwC’s audit of Connaught to the press, reports Calum Fuller

Audit / Blockchain: game changer for audit?

Given its dubious black economy origins, initially there was widespread distrust of Blockchain among audit and accounting circles. But it could change audit radically if it is adopted by larger businesses and auditors are forced to review their technical capability, reports Calum Fuller

Audit / FRC to review governance and culture at audit firms

The Financial Reporting Council (FRC) is to review the governance and culture at audit firms amid concerns over the effective handling of conflicts of interest and the pace of the delivery of improvements in audit quality and consistency, which its latest review suggests is not progressing fast enough.

Audit / FRC to review sanctions and governance code

The Financial Reporting Council (FRC) is to consult on strengthening its sanctions and changes to the corporate governance code over the course of 2017, the regulator confirmed at its annual priorities meeting reports Calum Fuller