Connect with us

Top Stories

UK watchdog proposes auditors publish quality indicators

UK watchdog proposes auditors publish quality indicators 1

LONDON (Reuters) – Britain’s accounting watchdog proposed on Wednesday that auditors publish indicators of how well they are performing in a bid to raise standards after a string of corporate failures.

The collapse of builder Carillion, retailer BHS and cafe chain Patisserie Valerie threw a spotlight on audit quality, prompting the government to propose a string of reforms, but there was no firm legislative timetable.

The Financial Reporting Council is stepping up pressure on auditors using the powers it already has, focusing on EY, PwC, Deloitte and KPMG, dubbed the Big Four, which audited 94% of the 350 biggest listed companies in 2020.

“The 11 proposed audit quality indicators (AQIs) would provide stakeholders with a range of comparable indicators on perceived culture within an audit firm, audit quality inspection results, staff workloads, and the level of partners’ involvement in individual audits,” the FRC said in a statement.

“We propose to also develop a methodological/guidance note to ensure firms describe and measure their AQIs in the same way – we will offer firms the chance to cooperate on developing this guidance after publication of the feedback statement towards the end of 2022.”

(Reporting by Huw Jones; Editing by Alex Richardson and Edmund Blair)

Editorial & Advertiser disclosure
Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
Global Banking and Finance Review Awards Nominations 2022
2022 Awards now open. Click Here to Nominate


Newsletters with Secrets & Analysis. Subscribe Now