Financial directors from among the hundred largest UK companies have rejected any plan to restrict accountants taking non-audit work from their audit clients.
The reclusive Hundred Group, comprised of finance directors from the largest companies in the UK, say there is no need to change existing guidelines on non-audit services.
The group’s views are contained in a submission to the Auditing Practices Board (APB) which is reviewing current guidelines which hold a possibility of added restrictions on audit firms taking non-audit work from their clients.
The APB proposals grew out of a Treasury select committee report which found a firm’s independence could be undermined by the substantial revenue it received from non-audit work it undertook from audit clients.
"We strongly believe that investor confidence, and trust in audit would be enhanced by a prohibition on audit firms conducting non-audit work for the same company, and recommend that the Financial Reporting Council (FRC) consult on this proposal at the earliest opportunity," the committee said at the time.
The Hundred Group disagrees.
“We are satisfied that no real threat to independence exists,” the body said in its submission.
“We believe the current principles are working well and our members do not support a material change in the current guidelines.”
The group believes a ban on non-audit services by auditors would impact the competitiveness of UK companies.
Further reading: Welcome to The 100 Group
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