PracticeAuditReforms to transform auditor-regulator relations

Reforms to transform auditor-regulator relations

Proposals may suggest structured relationship between auditor and regulator

Auditors may revive their open dialogue with regulators and even work for
them while conducting their audits, as part of new proposals expected to be
released this week.

The proposals will reopen dialogue between regulators and may lead to the
expansion of so called Section 166 reports, used by regulators to seek
information on a potential problem area in accounts.

The once healthy relationship between auditors and the Bank of England was
left to sour when the Tripartite System came into effect in 1997. The new paper
will seek to revive this system under a more structured approach.

Auditors may also be asked to take part in expanded Section 166 reports.
Under the proposals auditors may be asked to take on additional work, as well as
their statutory duties, to investigate areas of interest to regulators within a
company.

The measures are part of proposals being considered in the wake of the
crisis, and are part of a wider industry rethink about the value of audit.

Further reading:

Bank
auditors eyed for whistleblower role

Related Articles

Is predictive analytics the end of the annual audit?

Audit Is predictive analytics the end of the annual audit?

7d Martin Herron, MHA MacIntyre Hudson
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

2w Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

2w 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

2m 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