trending Market Intelligence /marketintelligence/en/news-insights/trending/3oHaS6AOF_PItEXTLUH-kA2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

UK regulator bans auditors from several advisory services

Commercial Real Estate: 2020 Review

Banking Essentials Newsletter December Edition Part 2

Banking Essentials Newsletter - November Edition

Online Brokerage Space Should Remain Rich Source Of M&A


UK regulator bans auditors from several advisory services

The U.K.'s Financial Reporting Council prohibited audit firms from providing recruitment and remuneration services to public interest entities they audit as part of efforts to strengthen auditor independence.

The body, which also disallowed accounting firms to play any part in management decision making, updated its ethical standards to state that firms will only be allowed to provide non-audit services that are closely related to the audit or are mandated by law.

"This will dramatically reduce the risk of a damaging conflict of interest, where the commercial interests of an auditor are perceived to be the most important factor in an audit relationship, rather than a focus on high quality audit," the authority for audit in the U.K. said.

Low quality audits and potential conflicts of interest have dimmed confidence in audit amid corporate failures.

The four biggest audit firms could lose millions of pounds in revenue as a result of the revised standards, the Financial Times reported.