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UK’s FRC: More work is needed to improve audit quality for all companies

Financial Reporting Council FRC audit quality

The quality of audits of FTSE 350 companies in the UK has steadily improved over recent years, according to the latest audit reviews undertaken by the country’s regulator, the Financial Reporting Council (FRC), however more work is needed to ensure improvements of audits of smaller companies.… Read the rest

FRC begins probe of KPMG and its Rolls-Royce audit

Rolls-Royce audit bribery KPMG

The Financial Reporting Council (FRC) has commenced an investigation under its audit enforcement procedure into the conduct of KPMG, in relation to its audit of Rolls-Royce’s financial statements from 2010 to 2013.

The FRC’s investigation follows an announcement in January that a Deferred Prosecution Agreement (DPA) had been reached between the Serious Fraud Office (SFO) and the engineering company.… Read the rest

Sports Direct 2016 accounts to be investigated

Sports Direct Logo

The Financial Reporting Council (FRC) has commenced an investigation into retailer Sports Direct’s accounts following reports earlier this year that there was an arrangement between Sports Direct and Barlin Delivery which was not disclosed as a related party in the company’s 2016 financial statements.… Read the rest

HBOS & BHS audit investigations launched

The UK’s Financial Reporting Council (FRC) has launched two separate audit investigations,one into KPMG’s audit of HBOS in 2007 and secondly PricewaterhouseCoopers audit of BHS in 2014 – under its accountancy scheme which it allows it to take disciplinary action against members of the profession.… Read the rest

Shell has muted opposition to executive pay

Royal Dutch Shell experienced a relatively modest level of investor opposition to its executive remuneration report at its recent AGM with a 14% vote against, this follows the rival oil company BP’s loss of its pay vote last month. However, Manifest data shows it is the highest level of opposition Shell has received in the past six years – although it hovered between 10% and 11% between 2012 and 2014.… Read the rest

US audit firms to disclose the partners who carry out audits

The US Public Company Accounting Oversight Board (PCAOB) has  announced that its rules to improve the transparency of the audit by disclosing the names of audit engagement partners, as well as information about other firms that participate in the audits, were approved by the Securities and Exchange Commission.… Read the rest

Shell audit conflict raises eyebrows at Standard Life

…as the UK’s Financial Reporting Council finalises auditor rules

The Financial Reporting Council (FRC) has published final drafts of the latest UK corporate governance code and the associated guidance on audit committees so they will meet the requirements of forthcoming legislation on audit committees and auditor appointments.… Read the rest

Broader skills needed to produce better audits in the future research finds

Changes may be needed to ensure audit teams have the right skills in the future and there needs to be an open and constructive debate on the future of audit findings from two international studies produced for the UK’s Financial Reporting Council and ICAS show.… Read the rest

UK's FRC consults on new audit enforcement regime

With the EU’s audit regulation and audit directive coming into force in June the UK’s Financial Reporting Council (FRC) is consulting on its new audit enforcement procedure for audits of Public Interest Entities (PIE) – which include listed companies, credit institutions and insurance undertakings.… Read the rest

FRC reviews KPMG's audit of HBOS

The UK’s accounting regulator, the Financial Reporting Council (FRC), is to consider whether the accountancy firm, KPMG, or any individuals require further investigation following a review of the report, published last November by the Prudential Regulatory Authority and the Financial Conduct Authority, into the failure of HBOS plc.

Read the rest

Financial Reporting Council consults on Audit Firm Code and board succession

The Financial Reporting Council (FRC) has issued two consultations as part of its ramped up efforts to implement the EU Audit Regulation and Directive regime and strengthen investor confidence in governance.

Board Succession Planning

Following its October discussion paper UK Board Succession Planning -the FRC is now seeking input and feedback on how to achieve diverse and successful boards in the UK.… Read the rest

FRC urges caution on bundled audits

The UK’s Financial Reporting Council (FRC) has warned against companies signing up for “bundled audits” pending completion of a review into the ethical questions surrounding their use.

As we reported in August, the downturn has encouraged the development of a new type of audit which blends internal and external audit.… Read the rest