PracticeAuditNo need for EU regulators’ guidance on subprime turmoil

No need for EU regulators' guidance on subprime turmoil

But PCAOB says crises has created complex accounting issues that may need guidance

The EC’s Internal Markets Commissioner, Charlie McCreevy, said today that
there is no need for regulators in Europe to give new guidance on auditing
companies affected by the turmoil in the US subprime market.

McCreevy told journalists at a conference in Brussels that top auditing firms
are already in talks over how to address issues such as verifying the accuracy
of a company’s exposure to certain financial products.

He was responding to earlier comments at an audit regulation conference,
during which Public Company Accounting Oversight Board chairman Mark Olson said
that the crisis stemming from home mortgage defaults by the less creditworthy
has created complex accounting issues and may need guidance,
Reuters
reported.

Olson and McCreevy had earlier delivered speeches at the Federation of
European Accountants conference on Audit Regulation.

Olson said the board is looking at how fair value of an asset, such as
complex repackaged bonds linked to subprime mortgages, could be calculated when
trading in those products had seized up.

‘It has not been decided for certain that we will be providing the guidance,
but it would be similar to what we did for options dating. It’s an effort to
clarify some of the key areas auditors should focus on,’ Olson said.

Further reading:

Mutual oversight of audit to be discussed at FEE
conference

Related Articles

EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2d Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

5d Emma Smith, Managing Editor
FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

2w Alia Shoaib, Reporter
PwC to audit BBC pay policies following gender pay gap outrage

Accounting Firms PwC to audit BBC pay policies following gender pay gap outrage

1m Alia Shoaib, Reporter
PwC to take over from Deloitte as Diploma auditor

Accounting Firms PwC to take over from Deloitte as Diploma auditor

1m Alia Shoaib, Reporter
KPMG rocked by South African corruption scandal

Audit KPMG rocked by South African corruption scandal

3w Alia Shoaib, Reporter
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

4w Emma Smith, Managing Editor
FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

Accounting Firms FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

4w Emma Smith, Managing Editor