PracticeAuditSelf-regulation may survive

Self-regulation may survive

It would 'premature' to predict the end of self-regulation for the accountancy industry, according to a senior figure in the profession's watchdog.

Link: DTI drags heels on reform

Review Board director Colin Reeves, in the midst of investigating options for regulatory reform believes self-regulation should not be written off just yet.

Writing in Accountancy Age Reeves says: ‘There is no doubt that whatever decisions are made on these issues by the Co-ordinating Group on Audit and Accounting Issues, they will have substantial implications for the future of regulation in the UK.’

Opinion is divided among auditors over whether the monitoring of firms should stay within the professional bodies, according to a survey conducted by the Review Board.

The study found 49% thought that monitoring should stay with the Joint Monitoring Unit and ACCA while a hefty 42% believed the role should be shifted to an external regulator.

The news comes after it emerged a MORI poll found that 62% of auditors believed their objectivity had been undermined by the need to win non-audit business.

Concern about losing an audit contract was quoted by 64% as a reason for impartiality being compromised while 74% said close relationships with client managers was damaging.

Reeves reveals that MORI also found that a majority of auditors, 61%, believe the JMU and ACCA can cope.

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