POB has for the first time named institutes in need of improvement in its annual report
TRANSPARENCY is the aim of the game at the Financial Reporting Council’s Professional Oversight Board, which has for the first time named the institutes that it feels need to tighten up aspects of their regulatory oversight.
In an annual report presented to the secretary of state for Business, Innovation and Skills, interim chairman John Kellas (pictured) said: “We hope that this publicity will provide even more encouragement to the bodies to respond to the Oversight Board’s concerns positively and in a timely way.”
Among those singled out, ACCA was warned to be more robust in ensuring that auditors continue to be competent when their initial audit experience was gained some time ago.
But it was not all doom and gloom, as POB noted that the institute has made “significant changes” to its final audit exam in response to earlier recommendations.
The report comments on POB’s responsibilities and calls on all qualifying bodies to improve certain aspects of the way in which they grant exemptions examinations.
Processes for approving individuals entitled to sign off on audit also received attention. POB sub-board the Audit Inspection Unit will publish reports on individual firms early next week, including the Big Four, Grant Thornton and BDO.