15 firms lose audit licenses
Report by leading accountancy institiutes reveals that 15 firms have had their audit licences revoked
Report by leading accountancy institiutes reveals that 15 firms have had their audit licences revoked
Some 15 accounting firms have had their audit licenses revoked after site
visits by leading accounting institutes found that they were not doing enough to
improve their audit work.
The figures were disclosed in a report for the DTI on UK audit regulation by
the chartered accountancy institutes of England and Wales, Scotland and Ireland.
The release of the report comes at a time when government has been shifting
responsibility for the 95 audit firms with listed clients away from the
Institutes to the Financial Reporting Council’s Audit Inspection Unit.
John Hobbs, chairman of the joint audit committee for the three Institutes,
however, said they would still have an important role to play in future audit
regulation.
‘This has been another year of change as the Government’s revisions to the
audit regulatory arrangements, under the control of the FRC, are implemented,’
said Hobbs.
‘Under the new arrangements, the institutes retain their full supervisory
role. So we are still responsible for registering all firms and taking any
decisions about continued registration.’
The institutes undertook 1,114 site visits of the 6,897 registered firms in
2004 and found that 88% of the firms visited required no action to improve their
audit standards or had a suitable plan in place to do so.
In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...
View resourceIn recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...
View resourceIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceThe first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...
View resourceThis follows an investigation into undisclosed personal loans and issues with an acquisition. Despite challenges, the company aims to achieve £1bn in ...
View articlePwC's decision to delay promotions in its graduate scheme, affecting around 100 graduates, is a response to reduced client demand and the aftermath of...
View articleTraditionally, audit schedules have been prepared manually, consuming significant time and resources. However, with the advancements in Artificial Int...
View articleThe FRC is promoting initiatives to foster a more competitive market, following recent high-profile accounting scandals. Read More...
View articleOn January 27, it was reported EY had quit as auditor to Asda amid one of its senior partners starting a romantic relationship with billionaire chief ...
View articleDespite the increased interest in AI and ML, only 12% of respondents indicate their organisations have adopted AI and ML within their audit functions....
View articleAs the government's independent investigation progresses, it is hoped that a clearer picture will emerge, leading to meaningful reforms within the aud...
View articleThe proposed enhancements, including the focus on material misstatements arising from non-compliance, the introduction of a risk assessment process, a...
View article