PracticeAuditACCA disappointed with government proposals

ACCA disappointed with government proposals

Government proposals to restore confidence in financial statements and auditing 'fail to grasp several important nettles', says the ACCA.

Responding to the interim report presented by trade minister Patricia Hewitt this afternoon, ACCA said it was disappointed at the lack of a clear line on the provision of non-audit services to audit clients, audit firm rotation and remuneration of listed company audit committees.

ACCA said its views were reflected more in the Treasury select committee report issued yesterday than the proposals announced by Hewitt this afternoon.

Click here to read about the Treasury report

Andrew Harding, executive director of ACCA UK, said: ‘We accept that this is only an interim report and that the government has called for further research. But it has missed the opportunity to give a clear signal that it is unacceptable for listed company auditors to provide services such as internal audit, financial and IT systems consultancy for their audit clients.’

The accountancy body however praised the government for its proposals to rotate audit partners every five years. instead of seven years. Although the ACCA does not support mandatory audit firm rotation, it backed the select committee’s proposal to require audit committees to state their reasons for retaining auditors after a five-year term.

Related Articles

PwC’s appeal against 2 year audit ban in India rejected

Audit PwC’s appeal against 2 year audit ban in India rejected

15h Alia Shoaib, Reporter
PwC found negligent by US judge over Colonial Bank's $2bn fraud

Audit PwC found negligent by US judge over Colonial Bank's $2bn fraud

3w Alia Shoaib, Reporter
Deloitte South Africa investigated over Steinhoff audits

Audit Deloitte South Africa investigated over Steinhoff audits

1m Alia Shoaib, Reporter
Top 5 audit fines of 2017

Audit Top 5 audit fines of 2017

1m Alia Shoaib, Reporter
PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

1m Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

2m Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

2m Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

2m Alia Shoaib, Reporter