PracticeAuditBoyle: Unwise to dismiss need for audit action

Boyle: Unwise to dismiss need for audit action

Boss of Financial Reporting Council warns against complacency in audit choice debate

The capital markets can not afford to grow complacent about the possibility
of losing one of the for large audit firms, top regulator Paul Boyle has warned.

In a column in the FT, the Financial Reporting Council boss, reacted
to findings from a US report into the audit market, which concluded that there
was no urgent need for action, by saying that such conclusions were ‘falsely
reassuring’.

‘We believe that it is unwise to dismiss the need for action… The mechanisms
for organising the sale or administration of an insolvent audit firm are
uncertain and untried. There is a need to improve the resilience of the market
rather than relying on regulators to ride to the rescue,’ Boyle said.

The FRC head pointed to the action that the UK profession had taken to reduce
the risk of losing a big audit player. He said there was no ‘silver bullet’
solution to the problem but said the 15 recommendations the industry had put
forward to increase choice in the market would help to address the problem.

Further reading:

‘Compelling’ need to tackle Big Four
issue

Big Four is enough says US government
watchdog

Related Articles

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

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

6d 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

7d 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
FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

2m Alia Shoaib, Reporter