Audit regulation

FRC: Individual Shareholders Engagement Meeting 5 Nov 2019

This was an excellent event, well organised by the FRC with about 80 attendees from ShareSoc and the UK Shareholders' Association. It is very reassuring to hear the underlying messages now coming from the FRC. The significant change of approach on transparency is very much to be applauded. It is also clear that oversight of audit quality is receiving much more attention. Following hard on the heels of yesterday's presentation from David Rule, I was very pleased to see today's news alert, ...

Response to Market Study on Statutory Audit Services

Response to Initial Consultation on Recommendations by the Competition and Markets Authority Peter Parry and Cliff Weight have written a joint response on behalf of the UK Shareholders’ Association (UKSA) and the UK Individual Shareholders’ Society (ShareSoc). This has been submitted to the CMA. We made these key points: There are a few important and overarching issues which we believe need to be stated: Limitations of the CMA’s remit; the CMA was tasked with looking at the audit market and, in particular, considering ...

UKSA-ShareSoc joint response to Brydon Review of Audit

UKSA-ShareSoc submitted a joint response to the Brydon REVIEW INTO THE QUALITY AND EFFECTIVENESS OF AUDIT  We said a fresh approach was needed. Many of the questions in the Review overtly or implicitly prompt debate about how the external audit can be made more robust and more relevant in future. Underlying this is a requirement to find ways of making auditors more accountable to those they are meant to be serving – namely the shareholders. Our view is that this cannot be achieved ...

Auditor appointments: ShareSoc+UKSA write to Minister Greg Clark

Today 18 Feb 2019, ShareSoc & UKSA have written to The Rt Hon Greg Clark MP, Secretary of State for Business, Energy and Industrial Strategy. We made three key points: Appointment of auditors by a third party with the relevant skills and expertise would, once and for all, break the current link of excessive dependency between auditors and those they audit. If, on a trial basis, the Regulator started by managing the appointment of auditors for FTSE 100 companies this would ...

Auditor Regulation and the dozy watchdogs

The Government has published a public consultation on Auditor Regulation. This is a discussion document in response to the requirements of a new European Directive on Audit, and your responses are invited. It's available here: https://www.gov.uk/government/consultations/auditor-regulation-effects-of-the-eu-and-wider-reforms although those who do not have a professional interest in the subject may find it heavy going. But it's worth repeating the first paragraph which is: "Effective financial reporting underpins the development of the best businesses - those that others are willing to invest in and ...