Suggested checks on overseas audit firms out for consultation
Feedback required on regulation to monitor overseas firms auditing companies outside the EU which are listed on the LSE
Feedback required on regulation to monitor overseas firms auditing companies outside the EU which are listed on the LSE
Proposals on regulating overseas audit firms used by companies outside the EU
but which are listed in the UK have been released by the
Financial
Reporting Council.
The Council wants feedback on its suggestions by the end of next month so it
can put in place regulation compliant with an EC statutory audit directive
agreed in 2006.
‘We are keen that audit regulators around the world should rely on one
another’s work to the maximum extent possible,’ said Paul George, oversight
board director at the FRC.
He said his organisation was pleased the EC had introduced ‘transitional
measures’ for countries which already have, or are planning, well developed
independent audit regulation. While still needing to register in the UK before
they sign a relevant audit report for UK purposes, audit firms from qualifying
jurisdictions will not be subject to the UK’s systems of inspection and
oversight.
The FRC’s oversight board has until the end of July to draft detailed
arrangements for the registration and regulation of third country audit firms.
The Cayman Islands, China, Channel Islands, Hong Kong, Kazakhstan, South
Africa, Switzerland and the US are among the 33 countries outside the EU
affected by the directive.
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