Brown orders accounting review
Gordon Brown has ordered an urgent review of the UK accounting profession amid fears that an Enron-style disaster could hit the UK.
The chancellor set up the internal Treasury review, which is expected to focus on the relationship between auditors and their clients, shortly after returning to work.
The news came after it emerged yesterday that the European arm of Enron could owe ‘billions’ to creditors, raising concerns that the London and continental operations of the energy giant could have used similar accounting techniques as those in the US.
ICAEW president Michael Groom said at today’s meeting of the institute’s council that it would be seeking to co-operate fully with the review.
The Treasury Select Committee also announced yesterday it would be investigating the system of UK financial regulation.