PracticeAccounting FirmsFRRP unlikely to spot ‘UK Enron’

FRRP unlikely to spot 'UK Enron'

A more proactive financial reporting watchdog would be unlikely to spot a 'UK Enron', according to a leading FTSE-100 finance director.

Link: New probing powers likely for FRRP

As part of a series of government-sanctioned reviews into the accountancy industry, ministers and regulators are considering endowing the Financial Reporting and Review Panel with greater powers, but concerns are already mounting.

Speaking exclusively to Accountancy Age, Rosemary Thorne, FD of Bradford & Bingley, said that although she was in favour of proactivity, she was concerned how it would work effectively and who would end up footing the bill.

Thorne said: ‘The only question I have is who is going to pay for it.’

Ian Brindle, deputy chairman of the panel, chaired the FRRP group whose findings will be fed into the government.

Thorne added: ‘It’s a very hard job to picture how proactivity would work without it costing a fortune. It’s hard enough persuading your board that you need extra headcount for international standards or implementing company law reform, to then think of paying another £100,000 a year through the stock exchange towards this massive body, that is just checking the checkers.

‘The board will say: “Isn’t that why we’re paying the auditors?”.’

The full interview with Rosemary Thorne will appear shortly on the website.

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