Watchdog probes Big Four transparency
Professional Oversight Board for Accountancy to examine level of transparency provided by firms operating as limited liability partnerships
The UK’s accounting watchdog is set to launch an investigation into the
transparency of accounts of some of the nation’s largest accounting firms.
The Professional Oversight Board for Accountancy, part of the Financial
Reporting Council, is expected to examine the level of transparency provided by
firms operating as limited liability partnerships in the new year.
This move will establish what best practice should be in the future. All of
the Big Four operate as LLPs.
Currently, all LLP firms have an obligation to file financial information
with Companies House, but the requirements for such businesses are set to
increase in the near future.
‘There is a requirement within the European Union eighth directive, which is
in the process of being finalised, that will make it a legal obligation on audit
firms and for public interest entities to produce transparency reports,’ said
Paul George, director of POBA.
‘We suspect that as part of the UK’s response to the directive, there will be
a need to address this point, and we will need to get involved in that.’