Law and regulation

Audit / Does the FRC have more bark than bite?

A spate of multimillion pound fines for misconduct at audit firms following dubious audits at listed companies has put the audit regulator, the Financial Reporting Council (FRC), under greater pressure, but is it fulfilling its role and displaying real powers, ask partner Hannah Laming and associate Nicholas Querée of law firm Peters & Peters 

Audit / KPMG to face tribunal over Equity Red Star audit in November

The FRC has confirmed that KPMG and two of its audit partners are to face a disciplinary tribunal on 27 November over the firms handling of the audit of Lloyd’s Syndicate 218 (Equity Red Star), a specialist motor insurer

Audit / FRC has learned from HBOS experience, says Haddrill

The Financial Reporting Council (FRC) is now better equipped to take enforcement action over audit failures, according to chief executive Stephen Haddrill

Audit / UK regulation could need EU recognition post-Brexit

The regulation of audit after the completion of Brexit may need to be recognised as equivalent by the EU in order for UK firms’ work to be accepted, the Financial Reporting Council (FRC) has admitted

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 / McLaren: FRC defends updated Ethical Standard

Financial Reporting Council (FRC) executive director of audit and actuarial regulation Melanie McLaren discusses the main changes to the FRC’s Ethical Standard and its impact since its introduction in 2016

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 / Dixon: FRC had no chance of success over HBOS KPMG audit probe

The FRC’s decision not to pursue further action against KPMG over its audit of HBOS is no sign of dysfunctional regulation, says Ross Dixon, partner at law firm Hickman & Rose

Audit / The regulator's lot: examining the role of audit regulation

Regulators are unloved and frequently criticised, but play a key and underappreciated role in audit and the economy, finds Katharine Bagshaw FCA 

Audit / FRC not ‘too close’ to audit market, says PwC

There is no issue around the Financial Reporting Council’s (FRC) independence from the auditors and audit firms it regulates, according to senior PwC partners

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

Accounting / FRC drops investigation of KPMG’s audit of HBOS

The Financial Reporting Council has ended its investigation of KPMG’s audit of HBOS for the year ended 31 December 2007 after it concluded there is ‘not a realistic prospect of an adverse finding’, reports Calum Fuller

Audit / Internal auditors’ financial services code updated

The Chartered Institute of Internal Auditors (IIA) is launching new guidance on how risk should be managed in UK banks and other financial institutions, with the aim of strengthening the role of internal audit via updates to the financial services code

Audit / Audit threshold rise for co-operatives under review

A rise in the audit exemption thresholds for co-operatives and community benefit societies, bringing them into line with companies at the £5.2m figure, is out for consultation

Audit / SEC fines KPMG £4.8m over energy company audit failures

KPMG is to pay more than $6.2m (£4.8m) to settle charges brought by the Securities and Exchange Commission (SEC) that it failed to properly audit the financial statements of Miller Energy Resources, resulting in investors being misinformed about the company’s value