More NewsACCA in disclosure warning

ACCA in disclosure warning

ACCA expresses concern that new rules for auditors on communication with directors could lead to auditors making disclosures that company management had not

ACCA has warned that new rules for auditors on communication with directors
could place too much responsibility on the side of the auditor.

Responding to the consultation on international auditing standard 260, which
specifies the guidelines for communicating with those in a company charged with
governance, ACCA expressed concern that the changes would mean auditors making
disclosures that company management had not.

Such an open-ended requirement that would include matters unrelated to the
audit, ACCA argues, would do little to improve audit quality and could distort
professional judgement.

‘The detailed nature of the proposed requirements could lead many to take the
view that the auditor is solely responsible for how well management and those
charged with governance communicate,’ said Jonathan Beckerlegge, chairman of
ACCA’s auditing committee.

‘In truth, the responsibility for effective communication should be shared
and this needs to be made clear.’

The body also urged the standard’s authors to think beyond listed companies
when devising such auditing standards, given that those charged with governance
in SMEs may also manage the business, a circumstance which ACCA believes is
inadequately covered by the standard.

Related Articles

Amazon UK halves its corporation tax bill despite increased turnover

More News Amazon UK halves its corporation tax bill despite increased turnover

2m Alia Shoaib, Reporter
Increase in UK business confidence despite Brexit, according to ICAEW

More News Increase in UK business confidence despite Brexit, according to ICAEW

5m Alia Shoaib, Reporter
Live blog: Spring Budget 2017

Corporate Tax Live blog: Spring Budget 2017

8m Accountancy Age editorial
"Not enough time" to implement MTD by 2018, says Tyrie

Corporate Tax "Not enough time" to implement MTD by 2018, says Tyrie

11m Stephanie Wix, Writer
Colin: A spoonful of investment...

Governance Colin: A spoonful of investment...

11m Stephanie Wix, Writer
The Curious Incident of the Insolvency Sector in the Light of Economic Turbulence

Insolvency The Curious Incident of the Insolvency Sector in the Light of Economic Turbulence

9m Accountancy Age editorial
Leonard Curtis called in as administrators for builders Boshers

Legal Leonard Curtis called in as administrators for builders Boshers

9m Stephanie Wix, Writer
New Year Honours of 2017

Accounting Standards New Year Honours of 2017

10m Stephanie Wix, Writer