PracticeAuditFSA briefs auditors on banks

FSA briefs auditors on banks

City regulator talking to top six auditors over audit opinion concerns

The Financial Services Authority is holding talks with top auditors to try to
ensure banks are not destabilised by accountants making a qualified judgment in
annual accounts on their capacity to continue as a going concern, the Financial
Times reported.

The talks come amid fears that auditors could qualify the accounts of big
banks because of uncertainties about their funding and their dependence on
government money.

The City regulator has held two meetings with representatives from the top
six accounting firms to discuss such issues, including how it could help to
avoid any problems with the audit opinions, the FT said.

The meetings were first held in December, according to the newspaper.
Auditors told the FSA they needed extra information from the Bank of England
about its ‘discount window’ facility where banks can ease liquidity problems by
swapping assets for government bills.

On Monday the Bank announced it was extending the window from a one-month
limit to a full year.
Further reading

FSA
briefs auditors on banks

FRC
moves to avert a going concern ‘crisis’

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