Regulation
COMMENT: Audit reform, 27 July, 2020
Audit keeps failing—here’s why a fundamental change is needed
The frequency with which companies fail—seemingly without any warning signs—has grown in recent years, with Wirecard the latest example. Auditing needs reform.
NEWS: Reporting, 21 July, 2020
Covid-19: FRC urges companies to provide ‘more extensive disclosures’
The UK regulator says investors expect detailed reporting on the financial impact of Covid-19, while experts point to the risk of firms “burying bad news”.
NEWS: Finance, 15 July, 2020
CVAs: flexible business aid or delaying the inevitable?
Big brands are using company voluntary arrangements (CVAs) to manage the financial impact of Covid-19. But experts warn they can damage the reputation of businesses—and directors.
NEWS: Regulation, 14 July, 2020
FRC scrutiny of audit quality reveals “unacceptable” level of issues
The Financial Reporting Council looked at 88 audits conducted by a number of firms and found that 33% needed “more than limited improvements”.
NEWS: Due diligence, 10 July, 2020
Boohoo supply chain under scrutiny after Leicester lockdown claims
The fashion group’s share price plunged amid concerns over working conditions in its UK supply chain, raising questions about transparency and due diligence.
NEWS: Audit reform, 6 July, 2020
FRC issues principles for separation of audit from other services
The UK financial watchdog has announced that the operational separation of audit must take place by the end of June 2024.
NEWS: Governance reform, 3 July, 2020
Companies Act duties ‘need testing in the courts’ to improve governance
Sections 171 and 172 can support the shift to stakeholder capitalism, says Professor Bob Garratt—but only if they are taken seriously and enforced.
Disclosures, 17 June, 2020
FRC urges ‘clear and timely’ disclosures on company prospects
UK financial watchdog issues further guidance on making financial disclosures reflecting the impact of the Covid-19 pandemic.
UK audit market, 12 June, 2020
BDO client increase sees it overtake KPMG in UK auditor rankings
Signs of change at the top as BDO is ranked second only to PwC by number of listed clients—although FTSE 100 audits remain the preserve of the Big Four.
INSIGHT: Compliance, 2 June, 2020
Internal investigations are on the rise—but are they robust enough?
New legislation in the UK and Europe has added pressure for more internal investigations. But the lack of guidance puts companies at a disadvantage.