PracticeAuditBanks should introduce extra accounts for regulators

Banks should introduce extra accounts for regulators

Bank ought to produce an additional set of accounts for regulators, according to Accountancy Age readers

Banks should introduce extra accounts for regulators

BANKS should produce an additional set of accounts for regulators, according to Accountancy Age readers.

Of the 50 polled, 94% agreed audited accounts conspicuously failed to accurately inform their users about the financial condition of banks, and as such warranted the additional accounts. The remaining 6% said the existing principles in international accounting standards are all perfectly applicable to banks.

The Parliamentary Commission on Banking Standards (PCBS) last month said auditors failed in their duty to expose the risks accumulating banks’ balance sheets and acted as “cheerleaders” for questionable reporting practices.

The group was set up by the government in the wake of a string of scandals involving the industry. It found bankers, regulators, investors and auditors all failed to understand the risks building up in the banking system.

According to evidence collected by the PCBS, the overly close relationships between banks and their auditors meant that “at best, auditors did not act as the last line of defence against banks’ questionable reporting on their own businesses and, at worst, they were cheerleaders for it.”

Related Articles

Ukraine central bank removes PwC’s bank auditing rights

Audit Ukraine central bank removes PwC’s bank auditing rights

2m Alia Shoaib, Reporter
Sports Direct implements FRC corrections in annual reporting

Accounting Standards Sports Direct implements FRC corrections in annual reporting

9m Stephanie Wix, Writer
FRC expects Brexit narrative within annual reports

Accounting Standards FRC expects Brexit narrative within annual reports

11m Stephanie Wix, Writer
Solvency and liquidity queries tackled in FRC going concern guidance

Accounting Standards Solvency and liquidity queries tackled in FRC going concern guidance

1y Calum Fuller, Reporter
FRC confirms KPMG-HBOS report to be released ‘in spring’

Audit FRC confirms KPMG-HBOS report to be released ‘in spring’

1y Calum Fuller, Reporter
Are you getting fair value?

Audit Are you getting fair value?

1y AccountancyAge staff
Implementation of non-financial reporting should build on existing UK regime, says ICAEW

Audit Implementation of non-financial reporting should build on existing UK regime, says ICAEW

1y Calum Fuller, Reporter
FRC announces 14% levy rise in annual budget

Audit FRC announces 14% levy rise in annual budget

1y Calum Fuller, Reporter