In response to Patricia Hewitt’s statement on the DTI’s report from the Co-ordinating Group on Auditing and Accountancy, KPMG said a new independent body would ‘meet legitimate public expectations’.
The new regime will see the Financial Reporting Council effectively take over from the Accountancy Foundation as the chief regulator of the profession.
Mike Rake, international chairman at KPMG, said: ‘There has been a need for a more joined up approach to the development of accounting guidance and the audit implications of these, as well as for a more proactive body, to help address concerns that adequate safeguards to auditor independence exist.’
However, he warned that it was important that the ‘right leadership and key appointments’ were put in place this year.
KPMG also backed the audit committee playing a greater role in reviewing non-audit services and providing disclosure on their decisions.
The firm said it already complied with the recommendation that it publish an annual report, and it said its latest report showed that no single client contributed more than 5% of fees.
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