PracticeAuditAudit inspections will target banks in 2010

Audit inspections will target banks in 2010

Financial watchdog widens scope of audit investigations

The UK financial reporting watchdog has will single out banks when it
undertakes its yearly inspection of major audits.

The Professional Oversight Board, which is part of the Financial Reporting
Council, said it will place banks in their own category when deciding which
sectors it will inspect this year.

It has also widened the scope of its inspections, which will now include
entities with a group turnover greater than £500m or a turnover in excess of
£100m and external long term debt in excess of £250m.

Each year the board’s Audit Inspection Unit targets particular audits
conducted by the top-eight audit firms in targeted industries.

Dame Barbara Mills, chair of the board said the recession heightened audit
risks.

“The Board continues to have regard to the level of public interest involved

and has determined that the level of current public interest in banks means

that these should be included as a separate category.”

Read the full FRC statement:
The
Professional Oversight Board announces the scope of the Audit Inspection Unit’s
work for 2010/11

Further reading:
Audit
quality under pressure as firms cut costs

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