Audit inspection extended to mutuals

BUILDING SOCIETIES will fall under the remit of the Audit Inspection Unit’s work in 2011/12.

The Professional Oversight Board today announced it has widened the scope of its investigations to include mutuals, having last year focused only on major banks.

A sub-division of the Financial Reporting Council, the AIU reviews cases on a risk-based approach, and will this year pay particular attention to fair value accounting estimates and disclosures, as well as the impairment of assets and going concern.

Dame Barbara Mills, chair of the board (pictured above), commented: “Current economic conditions continue to present heightened audit risks in a number of areas and business sectors.” She added that this will be the body’s focus in the coming months.

Related reading