PracticeAuditFDs split on ‘last resort’ auditor role

FDs split on 'last resort' auditor role

Should the government be the auditor of last resort to companies who fail to find a commercial provider?

Link: NAO to be auditor of ‘last resort’

The majority of finance directors believe the government should become an auditor of last resort, rescuing companies otherwise forced to cease trading because they cannot find a commercial provider.

Almost one in two of the 163 FDs interviewed in this week?s Accountancy Age/Reed Accountancy Personnel Big Question say it is the government’s responsibility to come to the aid of companies that cannot otherwise find an auditor. Many see the government?s intervention as a way of protecting business interests from being bullied.

One FD said: ‘We can’t allow any splinter group to be able to decide which companies survive and which don?t, so the government must become the last resort.’

Another added: ‘We cannot allow such intimidation to interfere with the activities of legitimately run companies. It would be much better if the legal penalties against such behaviour were increased.’

The news comes after the government admitted it may have to help Huntingdon Life Sciences find an auditor. The drug testing company has been without an auditor for two months since Deloitte & Touche quit following a global campaign by animal rights groups.

Related Articles

Is predictive analytics the end of the annual audit?

Audit Is predictive analytics the end of the annual audit?

5d Martin Herron, MHA MacIntyre Hudson
Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

1w Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

2w Alia Shoaib, Reporter
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

2m Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2m Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter