A root and branch review of the audit profession is required, the weekend
papers have reported, after criticism of Ernst & Young’s audit of
Guardian reported that MPs want a review of how the audit
industry works, plus consideration of the non-audit consultancy work they
undertake for clients.
Tory MP Michael Fallon said a “fresh approach” was needed that revealed risky
practices by banks.
Lib Dem Treasury spokesman Lord Oakeshott said banning audit firms from
accepting additional consultancy work was a starting point to cleaning up the
The report into the collapse of Lehmans alleged that the bank used legal
accounting practices to help misrepresent the financial position of the company.
It also questions whether auditors Ernst & Young were professionally
negligent over their acceptance of Lehmans use of accounting rules, which saw
$50bn of debts kept off the balance sheet.
said that the report would bring auditors’ role back into the spotlight – but
the fallout shouldn’t damage E&Y irrevocably.
Mail’s Simon Watkins wrote: “This weekend E&Y is far from
finished, but it is safe to say that the Valukas report has left its stunned.”
Two new audit partners have been appointed at the firm BDO in its audit practice following continued growth and investment
"The whole idea of HMRC officials supplying confidential information about individuals to the media on a non-attributable basis is, or should be, a matter of serious concern," say Supreme Court judges
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
Investment in people, tech and businesses impacts on EY's profit per partner figure