PracticeAuditDTI report: KPMG backs new regulator

DTI report: KPMG backs new regulator

Big four firm KPMG has come out in support of the establishment of a new independent regulatory regime to govern the profession.

Link: Read the full report on Hewitt’s speech

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.

Related Articles

Is predictive analytics the end of the annual audit?

Audit Is predictive analytics the end of the annual audit?

8h Martin Herron, MHA MacIntyre Hudson
Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

5d Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

1w Alia Shoaib, Reporter
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

1m Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2m Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter