PracticeAuditWatchdog issues warning on internal controls

Watchdog issues warning on internal controls

FRC says economy is still a risk and audit committee must monitor carefully

The financial reporting watchdog has issued a warning to audit committees
asking them to be more vigilant over accounting policies and internal controls
in the wake of reworked business plans.

The Financial Reporting Council said that the next 12 months “are likely to
be particularly difficult for directors, trustees and management and increase
the risk that annual reports and accounts misreport facts and circumstances and
contain unidentified errors and omissions.”

Ian Wright, director of corporate reporting at the FRC, said: “Whilst there
are some positive economic signs we must be even more alert to the risk of error
and omission at this time given the risk of a rise in insolvencies over the next
few months.”

FRC is particularly concerned the effect that modifying terms of trade and
arrangements for pension funds may have on company accounts.

Related Articles

Top 5 audit fines of 2017

Audit Top 5 audit fines of 2017

5m Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

6m Carl Johnson, Stephensons
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

6m Alia Shoaib, Reporter
FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

8m Alia Shoaib, Reporter
FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

Accounting Firms FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

8m Emma Smith, Managing Editor
PwC fined a record £5.1m by the FRC over RSM Tenon audit

Audit PwC fined a record £5.1m by the FRC over RSM Tenon audit

9m Alia Shoaib, Reporter
BDO overtakes KPMG to take top spot in AIM auditor rankings

Accounting Firms BDO overtakes KPMG to take top spot in AIM auditor rankings

10m Alia Shoaib, Reporter
Demand for audit skills exceeding supply

Audit Demand for audit skills exceeding supply

10m Alia Shoaib, Reporter