PracticeAuditPartners should sign audit personally, DTI told

Partners should sign audit personally, DTI told

Audit partners to sign off audits personally under proposals put to government.

Audit partners will have to sign off audits personally and audit engagement letters will have to be published, under proposals put forward to the government.

Link: Liability guidelines in pipeline

The proposals, made to the government by the Audit Quality Forum, were the first in four key areas of audit aimed at improving the service shareholders receive.

They will be put to the DTI, which is currently deciding whether to push forward with legislation to allow auditors to negotiate proportionate liability with their clients.

A meeting on Monday of the AQF, under the chairmanship of Ernst & Young partner Gerald Russell, saw the forum agree the proposals. Legislation would need to be amended to ensure audit partners sign audit reports, while new rights for shareholders shareholders to put questions to the auditor in writing before an AGM are also being proposed.

The requirement to disclose engagement letters would be included in the combined code on corporate governance. Existing law would need amending to require auditors to provide details of the circumstances surrounding their resignation.

The AQF will now switch its attention to the issue of competition, with work expected to start towards the end this month.

‘There are a number of complex interrelationships between competition, quality and choice. The working party has suggested commissioning a number of items of research to provide evidence to support the next stage,’ said Tim Bush, chairman of the forum’s competition working group.

Related Articles

PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

3d Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

1w Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

1w Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

3w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor