Law and regulation

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

Audit / IAASA adopts auditing framework for Ireland

The Irish Auditing and Accounting Supervisory Authority (IAASA) has formally adopted the auditing framework for Ireland, following Ireland signing the EU statutory audits directive and rescinded the former UK regulator oversight

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

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