Audit report: standards need more enforcement
More enforcement of accounting standards has been called for by the government group set up to review the state auditing and accounting in the UK following scandals at Enron and WorldCom.
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.