Hundred Group opposes non-audit restrictions

by Mario Christodoulou

More from this author

02 Feb 2010

  • Comments
Ashley Almanza, chairman of Hundred Group

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

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

conservatoire-for-dance-and-drama

Finance-Director-part-time

Conservatoire for Dance and Drama, London, Permanent, Part Time, £60,000 pro rata

 

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.