Auditing faces ethical shake-up
The biggest ever crackdown on the working practices of accountancy firms in the UK has been launched today.
Prompted by high-profile finance scandals over the last 18 months, the independent regulator, the Auditing Practices Board, has proposed a new framework of ‘ethical standards’ for the industry.
Covering five areas, the standards would put an end to firms carrying out lucrative non-audit work for audit clients.
It would also see tough new restrictions placed on accountancy firms over fears that some auditors may not carry out work objectively.
And the APB also wants to ban the use of ‘success fees’ in audit, tax and some forms of corporate finance work.
The consultation document claimed that it wanted to ensure the ‘integrity, objectivity and independence of auditors’.