THE UK’S financial watchdog is to tighten the rules around the provision of non-audit services following a consultation on auditor ethical standards.
Responses to the Auditing Practices Board’s (APB) proposals on ethical standards found strong support to increase the oversight of auditors providing non-audit services to their clients.
While most respondents were against total prohibition of such services, they acknowledged that there can be a perception of a loss of independence where certain non-audit services are provided by the auditor, especially when the ratio of non-audit fees to audit fees is high.
The APB’s proposals to increase the rigour with which auditors assess threats to their independence, introduce a new non-audit services disclosure regime and increase the role of audit committees in overseeing the retention of a company’s auditors to undertake non-audit services received overwhelming support.
“The changes introduced, taken as a whole, represent a significant tightening of the requirements in relation to the provision of non-audit services by auditors and introduce a new approach designed to address investors’ perception concerns through greater transparency,” said APB chairman Richard Fleck.
Two new audit partners have been appointed at the firm BDO in its audit practice following continued growth and investment
Investment in people, tech and businesses impacts on EY's profit per partner figure
If businesses do not take cyber security seriously in their business planning regulators may do it for them, the ICAEW has warned
Dr Richard Willis provides a several thousand-year history lesson of the profession, from origin to modern-day