The Financial Reporting Council is pushing for “a wider range of sanctions to address shortcomings in audit quality” according to its submission to a House of Lords inquiry.
“We believe the FRC should have responsibility for the licensing of auditors of public interest entities – a task that should be undertaken in addition to the general licensing of auditors within the profession itself,” the FRC said in its submission.
Accounting firms are regulated, to a large extent, by professional accounting bodies, which have the power to hold hearings, de-register and ban both individuals and firms from practicing audit.
The FRC only has the power to investigate cases referred on by the professional accounting bodies – ICAEW, ICAS, ACCA and CIPFA – or cases which are in the public realm. The body’s disciplinary arm, the Accountancy and Actuarial Discipline Board, has in the past tried to convince the accounting bodies to allow it to begin its own independent investigations, but has so far failed to garner a consensus.
While everyone values audit quality highly we must be be careful that we don’t let it deter talent. We need to guard against its commoditisation and the threat to a unitary profession
Commissioning and preparing an asset valuation for financial reporting should involve a three way dialogue between the client, valuer & auditor
As a change-agent, internal audit has a lot going for it, but many internal audit functions need to upgrade their skills.
An Aberdeenshire director has been disqualified for failing to ensure her restaurant company kept adequate books and records