Corporate reporting

Accounting / Charities must comply with financial sanctions requirements

Charities need to ensure they comply fully with the latest financial sanctions rules, warns the Office of Financial Sanctions Implementation (OFSI)

Audit / FRC fines EY £1.8m over Tech Data audit misconduct

EY has been reprimanded and fined £1.8m, reduced from £2.75m, after admitting misconduct in relation to the audit of the financial statements of Tech Data Ltd (formerly known as Computer 2000 Distribution Ltd), for the financial year ended 31 January 2012, following an investigation by the Financial Reporting Council (FRC)

Audit / FRC decision to drop HBOS KPMG inquiry leaves questions for audit regulator

The decision by the Financial Reporting Council (FRC) to abandon its investigation of KPMG’s audit of HBOS has been heavily criticised but the audit profession has mounted a defence albeit raising questions about the future of the regulator. Calum Fuller reports

Audit / EU auditors call for greater public engagement

The general public must be informed of national and EU auditors’ work and their findings, and recommendations should be accessible and understandable by as many people as possible, the head of the French national audit office has said while attending a conference in Luxembourg to mark the 40th anniversary of the European Court of Auditors

Audit / Auditor general warns Scottish health authority faces ‘significant’ financial challenges

Scotland’s auditor general has issued a highly critical report on NHS Tayside, saying the health authority continues to face significant financial challenges despite its aim of achieving a financial balance within two years, while there is no sign it is currently able to repay over £30m in loan funding from the government

Audit / FRC begins disciplinary hearing over Baker Tilly and Tanfield

The Financial Reporting Council’s disciplinary tribunal has begun a hearing considering a formal complaint against Baker Tilly UK Audit, ICAEW member Richard King and Steven Railton, an ACCA member

Audit / IT company in legal challenge over Deloitte ‘negligence’

Hong Kong-based IT solutions provider DMX Technologies has said it is taking legal action against its former auditor Deloitte for alleged negligence relating to accounting irregularities discovered in 2015, which resulted in the then CEO and chief financial officer leaving

Audit / Deloitte on menu as auditor at Greencore Group

FTSE 250 international convenience food supplier Greencore Group has selected Deloitte as its external auditor with effect from the financial year ending 27 September 2019, replacing KPMG after ten years

Audit / Audit updates: October 2017

In our monthly roundup of developments in audit and governance, FRC drops probe into KPMG HBOS audit, FRC hits PwC with record £5.1m fine over collapsed RSM Tenon audit failure, Deloitte resigns as PayPoint auditor as KPMG appointed

Audit / Editor's comment: toothless audit regulator

Sara White, editor of Accountancy, discusses the Financial Reporting Council's (FRC) approach to enforcement and sanctions on the back of the regulator dropping its investigation into KPMG's HBOS audit

Audit / Woolf: when will auditors learn?

Emile Woolf FCA asks whether auditors have learned anything about the banking scandals, such as RBS, that have rocked business in the last decade

Audit / KPMG global chairman apologises for South Africa scandals

KPMG’s global chairman, John Veihmeyer, has issued an apology after the firm faced criticism over its audit work for the Gupta family and a separate report it produced for the South African Revenue Service

Audit / KPMG loses 18-year audit contract amid Gupta scandal

Sasfin Holdings, a South African banking and financial services group, has dropped KPMG as its auditor after 18 years citing ‘well-publicised concerns,’ as the firm faces criticism over its audit work for the Gupta family and a separate report it produced for the South African Revenue Service

Audit / Sanctions and ethics: is the audit regulator fit for purpose?

Fines for audit failures may be increasing with PwC landed  a record £5.1m fine for the RSM Tenon audit, and another £5m for failures over Connaught, while Deloitte was given a £4m fine for Aero Inventory audit failures and Grant Thornton a £2.2m fine for AssetCo but there are serious questions about the scale and size of penalties, how they are dished out and the rationale for how the audit regulator, the Financial Reporting Council (FRC) sets them. Calum Fuller reports

Audit / NAO publishes cyber security risk guidance for audit committees

The National Audit Office (NAO) has published cyber security and information risk guidance for audit committees, after identifying a high incidence of access-control weaknesses and other issues in the course of preparing its reports