DTI offers 'true and fair' support
Government meets with investors and the accounting profession over 'true and fair' audit
Investors and the accounting profession met with government representatives
yesterday, seeking assurances that changes to regulations and accounting
standards would not spell the end of the ‘true and fair view’ audit.
The meeting at the DTI was held shortly after a speech by industry minister
Alun Michael at an ICAEW breakfast briefing, in which he emphasised the
‘strategic importance’ of the true and fair view.
Concerns were initially raised in a paper by investment house Morley Fund
Management that changes to European regulations and the introduction of IFRS
would remove the true and fair requirement in an audit report and replace it
with something less rigorous.
The paper prompted the Financial Reporting Council to publish its own
analysis for consultation arguing that, despite changes, ‘the true and fair view
remains a cornerstone of financial reporting and auditing in the UK’.
‘The meeting is a question of putting everyone’s minds at rest,’ said one
accountant close to the talks. ‘We all want reassurance on this, but at worst I
suspect it will require little more than sorting out some wording.’