Audit News Briefing: 20 September 2015

Audit-is-cool is pleased to accumulate and provide its readers with the news on audit and related topics:

September 10, 2015

Accountancy Live

Government has poor oversight of financial entities it controls - NAO

Due to double increase of up to 54, in the number of supposedly controlled financial institutions since year 2007, The National Audit Office (NAO) criticised the government for failure to effectively oversee the matter. NAO Head Amyas Morse, advised: “Financial institutions are becoming significant elements in the government balance sheet, creating a range of opportunities and risks but no one part of government is taking an overview. The government should adopt a portfolio management approach alongside the traditional departmental oversight model to provide heightened assurance over the portfolio.” Please follow link for details: https://www.accountancylive.com/government-has-poor-oversight-financial-entities-it-controls-nao

September 9, 2015

Corporate Crime Reporter

US: BDO Admits Wrongdoing, To Pay $2.1 Million to Settle Audit Fraud Charges

The US member audit firm of the BDO International network, BDO USA has been fined $2.1m (£1.37m) by US regulator – Securities and Exchange Commission (SEC), for ignoring red flags and issuing ‘false and misleading’ unqualified audit opinions about the financial statements of staffing services company General Employment Enterprises (GEE). Charges were also filed against five firm partners with fraud charges against GEE’s then-chairman of the board and majority shareholder. “Audit firms must train their audit and national office professionals not only to recognize red flags but also to have the resolve to refuse signing off on an audit if there are unresolved material issues. BDO failed to do that here, even though these issues were elevated to the highest levels of its audit practice,” SEC Director Andrew Ceresney explained. Please follow link for details: http://www.corporatecrimereporter.com/news/200/bdo-admits-wrongdoing-to-pay-2-1-million-to-settle-audit-fraud-charges/

September 9, 2015

Accountancy Live

Requirements for accounting skills and tougher independence for bank audit committees

In accordance with the government's implementation of the 2014 EU audit legislation, Financial Conduct Authority (FCA) consultations are being held to aid in the amendment of their existing rules under the Disclosure Rule and Transparency Rule (DTR) Sourcebook. Under new proposals, stricter rules around independence and requirements for technical accounting skills are on the cards for the audit committees of public interest entities (PIEs). The EU audit legislation must be implemented in the UK by 17 June 2016. The deadline for feedback on the FCA consultation is 5 November 2015 and details are available here: http://www.fca.org.uk/news/cp15-28-quarterly-consultation-paper-no-10

Please follow link for details: https://www.accountancylive.com/requirements-accounting-skills-and-tougher-independence-bank-audit-committees