PracticeAuditAccounting ‘could be affected by credit crunch’

Accounting 'could be affected by credit crunch'

Public company auditors could face challenges over market uncertainty say US analysts

The US-based Centre for Audit Quality and the American institute for
Certified Public Accountants have issued three white papers addressing concerns
raised by the liquidity crises in the credit markets.

The papers follow concern around troubled
sub-prime-mortgage loans, along with warnings that
investors may be sidelined and auditors more challenged by the impact this
could have on public companies, AP reported.

The group said that it was not unreasonable to expect that current conditions
could persist for an extended period of time until the uncertainty is reduced.

The papers – prepared with input from the Financial Accounting Standards
Board, the Securities and Exchange Commission and the Public Company Accounting
Oversight Board – cover fair value, consolidation of commercial paper conduits,
and accounting for underwriting and loan commitments. The reports further
outline existing US accounting rules in the respective areas and explain their
application in situations of ‘illiquid market conditions’.

Further reading:

Read
one of the white papers here

FDs prepare for the crunch

Morgan Stanley suffers $940m sub-prime hit

Related Articles

Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

4d Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

1w Alia Shoaib, Reporter
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

1m Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2m Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter
Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

Audit Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

3m Alia Shoaib, Reporter