Audit report: watchdog faces early review

An interim report into the accountancy industry says the review will be brought forward – it will also look at funding which has come under fire for a perceived lack of independence.

The Foundation is wholly funded by the UK and Ireland’s six accountancy bodies. The Department of Trade and Industry was due to review the Foundation headed by Lord Gordon Borrie in 2006.

The report says: ‘On balance, we recommend that the Government brings forward this timetable and undertakes an early review of the regulatory arrangements, including the consequences for the basis of funding.’

Colin Reeves, head of the Foundation’s Review Board, has always maintained complete independence from the accountancy bodies, while the bodies themselves have said they are more than happy for the Foundation to be funded by other sources.

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