Accounting regulator will not halt frauds
The chairman of the Financial Reporting Review Panel says that the body's enhanced role will not stamp out all company malpractice.
Richard Sykes has warned the regulator could struggle to identify big accounting problems, especially fraud, reports the Financial Times.
The government wants to beef up the panel in an effort to prevent an Enron-style scandal on UK shores, but Sykes was cautious about the powers of the FRRP. ‘We are not the FBI or the fraud squad,’ he said.
At present the body only investigates a companies accounting practices following complaints or allegations in the media, but in July government called for it to be more proactive. It is still not clear, however, how this will be done.