FRC wants greater power over auditors

FRC wants greater power over auditors

FRC wants more power to sanction auditors

The Financial Reporting Council is pushing for “a wider range of sanctions to address shortcomings in audit quality” according to its submission to a House of Lords inquiry.

“We believe the FRC should have responsibility for the licensing of auditors of public interest entities – a task that should be undertaken in addition to the general licensing of auditors within the profession itself,” the FRC said in its submisnorthern-rock-signsion.

Accounting firms are regulated, to a large extent, by professional accounting bodies, which have the power to hold hearings, de-register and ban both individuals and firms from practicing audit.

The FRC only has the power to investigate cases referred on by the professional accounting bodies – ICAEW, ICAS, ACCA and CIPFA – or Houses of Parliamentcases which are in the public realm. The body’s disciplinary arm, the Accountancy and Actuarial Discipline Board, has in the past tried to convince the accounting bodies to allow it to begin its own independent investigations, but has so far failed to garner a consensus.

Further reading:

” Unrealistic” for Northern Rock auditor to have raised alarm

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource