Audit firms go on the defensive
As a second Big Five firm announced that it would no longer be providing internal audit outsourcing for external audit clients, other firms this week sought to defend their own positions.
As a second Big Five firm announced that it would no longer be providing internal audit outsourcing for external audit clients, other firms this week sought to defend their own positions.
Ernst & Young last week followed an earlier decision made by Deloitte & Touche in the UK to copy moves in the US restricting the provision of full internal audit outsourcing for listed external audit clients.
The firm said: ‘There is a public perception that there is a potential conflict of interest which makes carrying out a dual role of full outsourcing and external audit problematic.’
The move was seen as the latest attempt to shore up the integrity of the accounting profession in the wake of the Enron scandal, but the UK firm said it was adopting guidelines that were already due to come into force in the US in August this year.Rival Deloitte & Touche had already announced at the beginning of February it would no longer perform internal audit outsourcing for audit clients.
But Rodger Hughes, PwC’s UK audit chief, complained that the move would not properly address the underlying problem of independence.
He said: ‘My concern is that people seem to be rushing to make offerings in an attempt to placate concerns about independence rather than looking at the substance of what really causes independence problems.’
KPMG said it had discussed the situation with its clients, adding they had ‘expressed their complete satisfaction with the integrity of the work we do for them.’ Andersen said it was reviewing its policy.
The numbers you crunch tell a story. Your expertis...
22yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThree years after accountancy group DJH Mitten Clarke launched, they have announced that they have rebranded to DJH. The DJH Mitten Clarke name reflec...
View articleStatic budgets outdated. Embrace agile budgeting for a smooth year-end close and adapt to changing markets. Read More...
View articleSaffery Champness's strategic rebrand to "Saffery" reflects a bold step towards aligning its historic values with a modern, innovative ethos, fosterin...
View articleSumer’s CEO Warren Mead believes accountants have a responsibility to champion smaller and medium-sized businesses and that successful entrepreneurs a...
View articleMid-market firms experience largest percentage increase in fee income in 2023, as consultancy services start to become leading income streams for the ...
View articleBaker Tilly International has today announced record global revenues of US$5.2bn for the financial year ended 31 December 2023, up 11% on the previous...
View articleWhilst Small and Medium Enterprises (SMEs) account for around half of the turnover in the UK private sector[1], our own AAT research shows that over a...
View articleGrant Thornton UK as confirmed the appointment of Malcolm Gomersall as its new Chief Executive Officer. Gomersall, who has been with the firm for over...
View article