Corporate reporting

Audit / FRC considers Carillion audit investigation

The Financial Reporting Council (FRC) has indicated it is considering an investigation into the auditing of government outsourcing specialist Carillion, which has gone into liquidation putting thousands of jobs and dozens of complex infrastructure projects at risk

Audit / PwC facing two-year auditing ban in India

PwC is facing a two-year ban from auditing listed companies in India, following a probe by the Securities and Exchange Board of India (SEBI) into the 2009 accounting scandal at one of the firm’s clients, Satyam Computer Services, which became known as ‘India’s Enron’

Audit / PwC criticised over auditing ‘negligence’ in $2bn US bank fraud

PwC has been criticised in a US court over the firm’s failure to uncover a $2bn (£1.47bn) fraud at Colonial Bank, which subsequently collapsed in 2009, in a case brought by the bank’s receiver Federal Deposit Insurance Corp (FDIC) which may open the way for compensation claims

Audit / PCAOB fines Grant Thornton $1.5m for quality control violations

The Public Company Accounting Oversight Board (PCAOB) has announced a $1.5m (£1.11m) settlement with Grant Thornton in the regulator’s first ever findings of quality control violations at a domestic global network firm, along with identified audit failures

Audit / Audit updates: January 2018

In our monthly roundup of developments in audit and governance, Clarke sanctions review could see Big Four face £10m-plus regulatory fines, FRC admits to HBOS failures, corporate governance code set to cover AIM companies

Audit / FRC updates guidance for auditors on preliminary announcements

The Financial Reporting Council (FRC) has published revised guidance for auditors when agreeing to the publication of preliminary announcements, which has been updated to reflect the need for all price sensitive communications to be ‘fair, balanced and understandable’

Audit / Auditors need to ensure climate risk reporting up to standard

International charity ClientEarth is warning auditors who fail to take adequate account of climate-related risk reporting requirements could find themselves facing regulatory and legal challenges

Audit / Kingston Smith in pioneering artificial intelligence move

Kingston Smith is to be the first European adopter of an innovative artificial intelligence (AI) solution to improve audit analytics, supplied by Canadian fintech start-up MindBridge Ai which has also completed trials of the technology with the Bank of England

Audit / FRC urges auditors to clarify materiality judgments

Auditors need to be more specific with audit committees and in their public reports about the materiality judgments they have made and the impact on the scope, nature and extent of their audit work, according to the Financial Reporting Council’s (FRC) latest thematic review

Audit / Scottish Police Authority criticised for poor use of public money

Scotland’s auditor general has branded a series of governance failings and the poor use of public money at the Scottish Police Authority (SPA) as ‘unacceptable’ and says ensuring the body operates more effectively and transparently must be an immediate priority for its new leadership team

Audit / FRC update on auditors’ legal responsibilities

The Financial Reporting Council (FRC) has issued a revision to ISA (UK) 250 Section A – consideration of laws and regulations in an audit of financial statements, which includes updated guidance on the auditor's responsibilities in respect of money laundering, terrorist financing and proceeds of crime legislation in the UK

Audit / FRC to extend corporate governance code beyond FTSE 350

The Financial Reporting Council (FRC) is planning to overhaul the UK corporate governance code with a greater focus on stakeholders, integrity and corporate culture, as well as extending the rules to include large private companies outside the FTSE 350

Audit / Hike in audit thresholds for community benefit societies

Audit thresholds for co-operatives and community benefit societies will double from April 2018 in a bid to reduce red tape for the smallest organisations

Audit / Audit updates: December 2017

In our monthly roundup of developments in audit and governance, monitoring group plans overhaul of global auditing standard setting system, regulator fines EY £1.8m for audit failures at Tech Data, audit tenders

Audit / FRC to face Treasury Committee over HBOS KPMG audit

The Treasury Committee plans to hold a hearing with chiefs at the Financial Reporting Council (FRC) to understand why the audit regulator dropped its investigation into KPMG’s role in the pre-crash HBOS audit
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