Audit report: standards need more enforcement

In its interim report, the joint Department of Trade and Treasury group says ‘there should be more pro-active and wide-ranging enforcement of accounting standards in financial statements made by companies’.

It says the government should order a review of enforcement arrangements in the UK and believes it should take into account international developments.

The Financial Reporting Review Panel is also urged to ‘finalise’ arrangements for new pro-active elements to its work enforcing standards.

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