PracticeAuditGovernment drops ‘due and careful enquiry’ from OFR

Government drops 'due and careful enquiry' from OFR

Trade and industry secretary Patricia Hewitt has confirmed the government is dropping the words 'due and careful enquiry' from auditor requirements in the operating and financial review.

Link: OFR delay confirmed

Responding to worries that the introduction of these new words would create new legal problems for auditors, Hewitt stated that this requirement had been removed.

‘I have decided to drop the requirement that auditors give an opinion on whether the directors have used “due and careful enquiry” in preparing the OFR,’ said Hewitt. ‘This should address concerns that we might be requiring a different legal standard for this type of corporate report.’

She added that she was retaining the requirement that ‘auditors should consider whether the OFR is consistent with the company’s accounts, and whether it contains any inconsistencies based on any matters that have come to their attention while conducting the company audit’.

Hewitt also confirmed that the legal requirements of the OFR would now not kick in until 1 April 2005, after many expressed concerns over the difficulty of introducing it any sooner.

ASB chairman Ian Mackintosh has already said that getting an OFR standard ready for the end of March would be difficult, but that the end of the year would be impossible.

Related Articles

KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1w Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

2w Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

3w Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

3w Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

2m Alia Shoaib, Reporter
Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

Audit Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

2m Alia Shoaib, Reporter
Carillion inquiry: missed red flags, aggressive accounting and the pension deficit

Audit Carillion inquiry: missed red flags, aggressive accounting and the pension deficit

2m Alia Shoaib, Reporter
Deloitte’s audits of Hezbollah-linked bank to be examined by Dubai court

Audit Deloitte’s audits of Hezbollah-linked bank to be examined by Dubai court

2m Alia Shoaib, Reporter