DTI report: ACCA finds shortfalls in report
The Association of Chartered Certified Accountants has hit out at the co-ordinating group's report on auditing and accounting, claiming the measures do not go far enough.
Although it welcomes the shake up in accountancy regulation, the ACCA said it was concerned that not enough has been done to address the ‘cosy relationships’ that can exist between listed companies and auditing firms.
In particular it believes more should have been done to tackle audit firms providing consultancy services to clients. The report only recommends that audit committees set policies in this area.
Roger Adams, executive director-technical at ACCA, said: ‘Listed audit companies should be required to approve non-audit services in advance and to report to investors, both on the nature of those services and on the steps taken to ensure no conflicts of interest exist. There should also be full disclosure of fees in the financial statement.’