Law and regulation

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

Audit / FRC hits PwC with record £5.1m fine over RSM Tenon audit

The Financial Reporting Council (FRC) has given PwC a £5.1m fine - its largest ever – and a severe reprimand for what the regulator termed ‘extensive’ misconduct in the audit of the financial statements of RSM Tenon Group, for the financial year ended 30 June 2011

Audit / US regulator sanctions Crowe Horwath HK

Crowe Horwath’s Hong Kong firm has been sanctioned and its registration revoked by the Public Company Accounting Oversight Board (PCAOB) for refusing to cooperate with the US regulator’s investigation of the firm's audits of a China-based issuer

Audit / Woolf: ethics should be paramount

A shortfall in ethics in the lastest round of Audit Quality Inspections (AQIs) from the Financial Reporting Council (FRC) and endless conflicts of interest are bad for the audit profession. Emile Woolf FCA takes aim at auditors and standards