PracticeAuditSharman calls for regulator shake up

Sharman calls for regulator shake up

One of the accountancy world's most senior figures has called for a radical shakeup of the auditing profession, including a totally independent regulator.

Writing in The Times today, Lord Sharman said it was no longer acceptable for the key regulatory body to be funded by the very firms it seeks to regulate.

‘The big firms and the profession’s institute must insist that the Government funds and oversees regulation,’ the former KPMG senior partner said.

‘We must move to eradicate any notion that he who pays the piper calls the tune,’ he added.

Sharman also called for the compulsory rotation of audit partners every five years, though refused to back rotation of audit firms.

And he demanded all firms that audit publicly quoted companies should publish full accounts and reveal the total fees earned from their top five clients plus list any client that provides more than five percent of total income.

Sharman even went as far as to say these figures should apply to individual offices to avoid the Enron-Houston effect.

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