FSA briefs auditors on banks

The Financial Services Authority is holding talks with top auditors to try to ensure banks are not destabilised by accountants making a qualified judgment in annual accounts on their capacity to continue as a going concern, the Financial Times reported.

The talks come amid fears that auditors could qualify the accounts of big banks because of uncertainties about their funding and their dependence on government money.

The City regulator has held two meetings with representatives from the top six accounting firms to discuss such issues, including how it could help to avoid any problems with the audit opinions, the FT said.

The meetings were first held in December, according to the newspaper. Auditors told the FSA they needed extra information from the Bank of England about its 'discount window' facility where banks can ease liquidity problems by swapping assets for government bills.

On Monday the Bank announced it was extending the window from a one-month limit to a full year.
Further reading

FSA briefs auditors on banks

FRC moves to avert a going concern 'crisis'