KPMG calls for new audit watchdog
Big Four firm KPMG has called for an independent watchdog to monitor auditors, saying that the current regulator has been too slow to respond in the wake of Enron and Worldcom.
The new body, to be called the financial reporting and audit authority, would take over from the Accountancy Foundation and the Financial Reporting Council.
The KPMG recommendations echo those of Ernst & Young, which last week called for the abolition of the Accountancy Foundation, with its responsibilities being transferred to the Financial Reporting Council.
And it appears that the institutes are in agreement. The ACCA has also called for a more joined up approach to regulation saying that a UK-style Enron could still not be ruled out.