Lords may look into audit reform: McFall

The House of Lords could be the next to look into auditors’ role in the
crisis according to the former treasury select committee chair, who said audit
reform remains a live political issue.

Lord John McFall, former chair of the Treasury Select Committee, said
auditors could again be in the crosshairs, this time by the House of Lords.

Speaking to an audience of accountants at an event sponsored by institute
ICAS, McFall said he had already heard suggestions audit could be inline for
House of Lords attention.

“The whispers I had, from my first few days at the House of Lords is that the
lords are going to look at the issue of auditors and auditing,” he said.

“My view from the sideline is that there is a long way to go on this issue
yet… It is an issue that is on the political agenda.”

Audit reform has crept into the spotlight following a series of official
reform proposals in the last few months. The FRC and FSA released a
joint-discussion paper accusing auditors of displaying a “worrying lack of
scepticism” when challeneging valuations in banks.

Before this the EU released a paper on the future of banking, which also
suggested audit reform.

Further reading:

partner said auditors will not resist crisis reforms

chief calls for audit reform

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