Since announcing in June that a new mandatory auditor rotation rule would be introduced in 2023 South Africa’s Independent Regulatory Board for Auditors (IRBA) has surveyed the proxy voting results in respect of auditor re-appointments this year. The IRBA said that it had found a visible trend towards voting against the reappointment of auditors. Of […]
Read MoreCompany boards, particularly the non-executive director members, need to ensure they take an ethical and value-led approach to financial reporting according to the latest paper from the UK’s Institute of Business Ethics. The author of the report Guy Jubb, former governance head at Standard Life Investments, stated that accounting is not simply a question of […]
Read MoreJapanese company, Toshiba, which has been restructuring after admitting accounting failures in 2015 has published its annual report for 2016 after receiving a qualified opinion from its auditor, PWC Arata, which meant the firm avoided being delisted from the Tokyo Stock Exchange. Toshiba stated that the auditor gave its qualified opinion because it said it […]
Read MoreThe quality of auditing of larger companies has improved after targeted work by the Financial Reporting Council (FRC) the regulator said. The FRC said the leadership of audit firms’ focus on, and investment in, improving audit quality, together with promoting a culture of continuous improvement, is beginning to pay off. In the audit regulator’s second annual Developments in […]
Read MoreThe quality of audits of FTSE 350 companies in the UK has steadily improved over recent years, according to the latest audit reviews undertaken by the country’s regulator, the Financial Reporting Council (FRC), however more work is needed to ensure improvements of audits of smaller companies. The FRC found that 81% of FTSE 350 audits reviewed […]
Read MoreThe Financial Reporting Council (FRC) has commenced an investigation under its audit enforcement procedure into the conduct of KPMG, in relation to its audit of Rolls-Royce’s financial statements from 2010 to 2013. The FRC’s investigation follows an announcement in January that a Deferred Prosecution Agreement (DPA) had been reached between the Serious Fraud Office (SFO) and the engineering company. […]
Read MoreTesco has reached an agreement with the Serious Fraud Office (SFO) which, if approved by the court, will allow it to pay a fine for its false accounting in 2014 rather than face prosecution. Separately it has agreed with the Financial Conduct Agreement (FCA) that it will pay compensation to investors for market abuse when it presented misleading […]
Read MoreCommunications company BT has admitted improper accounting practices at its Italian subsidiary which resulted in overstated earnings over several years. BT is now conducting a broader review of financial processes, systems and controls across the company. BT’s remuneration committee will also consider the wider implications of the investigation. The announcement led to a drop of 20% in its share price […]
Read MoreThe UK’s Financial Reporting Council (FRC) has announced that in 2017 it will carry out a number of targeted thematic reviews of company reporting and audit on issues it knows to be of shareholder interest and where weaknesses have been identified. In respect of corporate reporting the FRC said it would be writing to companies […]
Read MoreThe Financial Reporting Council (FRC) has commenced an investigation into retailer Sports Direct’s accounts following reports earlier this year that there was an arrangement between Sports Direct and Barlin Delivery which was not disclosed as a related party in the company’s 2016 financial statements. Barlin Delivery is managed by John Ashley, brother of Sports Direct founder, […]
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