Speaking in Brussels Volcker said increased auditors’ fees would make it more feasible for accountancy firms to separate audit from consultancy and thereby end the debate on perceived conflicts of interest.
Volcker, a former US Federal Reserve chairman, said: ‘Crises are the antidote to complacency and I feel certain that recent events will stimulate more effective supervision of auditing firms and practices,’ the FT reported.
He said radical changes were needed in the profession to resolve the weaknesses of the global financial system brought to the fore by the collapse of the US energy giant Enron.
He added that more research on proposals for auditor rotation was needed before any changes were made.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Two new audit partners have been appointed at the firm BDO in its audit practice following continued growth and investment
Investment in people, tech and businesses impacts on EY's profit per partner figure
If businesses do not take cyber security seriously in their business planning regulators may do it for them, the ICAEW has warned