伦敦，2月6日/ PRNewswire / –英国审计专员要求排名前七的会计师事务所在不等待法律改变的情况下，推进审计和咨询服务的分离。财务报告委员会(FRC)通知所需的公司运营分离是为了提高[& # 8230;]< / p > < p >的< a href = " //www.dascontech.com/uk-watchdog-asks-high-accountancy-companies-to-ring-fence-auditing/ " target = "平等" >英国监管机构要求高会计公司保护审计< / >第一次出现在DECKSAND FENCES DAILY.
.LONDON, Feb. 6 / PRNewswire / – The UK’s audit commissioner has asked the top seven accounting firms to move forward with the separation of their audit and advisory services without waiting for a change in law.
The Financial Reporting Council (FRC) informed the companies that an operational separation was desired in order to improve audit quality and market stability.
In April last year, the UK’s Competition and Markets Authority (CMA) recommended that conflicts of interest at EY, KPMG, PwC and Deloitte, the accounting firms of the “Big Four” that dominate the audits of large companies around the world, be resolved.
The FRC said Mazars, BDO and Grant Thornton had also received a letter setting out their expectations.
Regulators fear that companies may be tempted to avoid audits in order to get more lucrative advisory work. The CMA Recommendation needs legislation to make it binding, which is unlikely by the end of 2020.
The CMA proposed separate management, accounts, compensation, general manager and board of directors for the audit branch, but still allows auditors to draw on non-audit expertise from across the company.
However, it remains close to the legislature’s call to break up the Big Four, and the Commerce Department has yet to say whether it will put the recommendation into effect at a time when the government is interested in not undermining the UK’s competitiveness in financial services .
Claire Lindridge, the FRC’s director of oversight and oversight of audit firms, said the goal is to get the largest companies to operate more quickly than can be achieved by legislation.
“The focus of the FRC is on ensuring that accounting firms are focused on audit quality, with new guidelines on independence and financial transparency supporting this,” said Lindridge.
“We expect companies to put in place independent governance over their audit practice and ensure that their audit practice is adequately segregated from the rest of the company so that financial results are clear and transparent.”
This underscores the frustration of the FRC, CMA and lawmakers over the pace of audit reform after three government-sponsored reviews that followed the collapse of businesses at construction company Carillion, retailer BHS, and more recent questions about the audit at Patisserie Valerie cafe chain.
The CMA also recommended that most of the UK’s 350 largest publicly traded companies hire two accountants to conduct a joint audit, which means that both companies would be jointly liable.
The auditors say this is impractical and have come up with ideas for joint audits, with an auditor doing the lion’s share of the work while a “challenger” audits parts of a company.
The FRC has also reached out to top auditors to clarify how common audits could be put in place before legislation is passed.
The FRC itself is waiting for the legislature to convert it into a stronger regulator called the ARGA to push through the proposed reforms.
Reporting by Huw Jones, Editing by Elaine Hardcastle
The post UK watchdog asks high accountancy companies to ring-fence auditing first appeared on DECKSAND FENCES DAILY.
伦敦，2月6日/ PRNewswire / –英国审计专员要求排名前七的会计师事务所在不等待法律改变的情况下，推进审计和咨询服务的分离。英国财务报告委员会(Financial Reporting Council, FRC)通知两家公司，希望进行业务分离，以改善[…审计首先出现在DECKSAND FENCES DAILY.
.LONDON, Feb. 6 / PRNewswire / – The UK’s audit commissioner has asked the top seven accounting firms to move forward with the separation of their audit and advisory services without waiting for a change in law.
The Financial Reporting Council (FRC) informed the companies that an operational separation was desired in order to improve audit quality and market stability.
In April last year, the UK’s Competition and Markets Authority (CMA) recommended that conflicts of interest at EY, KPMG, PwC and Deloitte, the accounting firms of the “Big Four” that dominate the audits of large companies around the world, be resolved.
The FRC said Mazars, BDO and Grant Thornton had also received a letter setting out their expectations.
Regulators fear that companies may be tempted to avoid audits in order to get more lucrative advisory work. The CMA Recommendation needs legislation to make it binding, which is unlikely by the end of 2020.
The CMA proposed separate management, accounts, compensation, general manager and board of directors for the audit branch, but still allows auditors to draw on non-audit expertise from across the company.
However, it remains close to the legislature’s call to break up the Big Four, and the Commerce Department has yet to say whether it will put the recommendation into effect at a time when the government is interested in not undermining the UK’s competitiveness in financial services .
Claire Lindridge, the FRC’s director of oversight and oversight of audit firms, said the goal is to get the largest companies to operate more quickly than can be achieved by legislation.
“The focus of the FRC is on ensuring that accounting firms are focused on audit quality, with new guidelines on independence and financial transparency supporting this,” said Lindridge.
“We expect companies to put in place independent governance over their audit practice and ensure that their audit practice is adequately segregated from the rest of the company so that financial results are clear and transparent.”
This underscores the frustration of the FRC, CMA, and lawmakers over the pace of audit reform after three government-sponsored reviews that followed the breakdown of businesses at construction company Carillion, retailer BHS, and more recent questions about the audit at Patisserie Valerie cafe chain.
The CMA also recommended that most of the UK’s 350 largest publicly traded companies hire two accountants to conduct a joint audit, which means that both companies would be jointly liable.
The auditors say this is impractical and have come up with ideas for joint audits, with an auditor doing the lion’s share of the work while a “challenger” audits parts of a company.
The FRC has also reached out to top auditors to clarify how common audits could be put in place before legislation is passed.
The FRC itself is waiting for the legislature to convert it into a stronger regulator called the ARGA to push through the proposed reforms.
Reporting by Huw Jones, Editing by Elaine Hardcastle
The post UK watchdog asks high accountancy corporations to ring-fence auditing first appeared on DECKSAND FENCES DAILY.