• Register
Return to: Home > News > Regulation > UK government kick-starts EU audit implementation, takes up 10+10 rotation option

UK government kick-starts EU audit implementation, takes up 10+10 rotation option

The UK Department for Business, Innovation and Skills (BIS) has started the debate on the options left by the EU audit reform by publishing a discussion paper aimed at gathering the views of stakeholders.

As reported by The Accountant, the BIS set up a group of interested parties, including accounting firms, professional bodies, companies and investors, which informed the early stages of the consultation.

The group was convened by the UK Financial Reporting Council (FRC) and met on a monthly basis for most of this year.

With regard to audit rotation, BIS proposes a flexible approach. The consultation suggests a framework which would make possible to rotate earlier than 10 years, "but still be able to extend the maximum duration beyond that".

In particular BIS proposes companies to report, as a new element of the Director's report, their plans to retender the audit engagement, making "binding" such an announcement in the report.

The UK Government wouldn't seek to make special provisions for joint audits. BIS proposals therefore don't take up the 14-year extension by appointing a joint auditor, as allowed by the EU rules.

Instead, to ensure consistency with the recent Competition and Markets Authorities rules, companies could keep their current auditor for another ten years, if a second auditor is appointed.

Regarding the provision of non-audit services and caps in audit fees, BIS is seeking views on whether or not the consultation on those services should be delegated in the FRC, as the accounting regulator deals with ethical standards and auditor's independence.

The FRC has also issued a consultation on the matter. The deadline to comment on BIS discussion paper ends 19 February 2015, whereas FRC consultation ends 20 March 2015.


Related article:

EU audit implementation: Key consultation expected in the UK

 

 

 

 

 

 

 

 

Top Content

    Nigeria: building compliance and engagement

    Opportunities created by regulatory and legislative changes in Nigeria are tempered by the fragile state of the economy, although practitioners are generally confident that conditions will improve over the next few years if appropriate steps are taken. Paul Golden reports.

    read more

    Ghana: a quest for consistency

    Ghana’s current economic profile would suggest a fertile landscape for purveyors of accounting services. But inconsistent approaches to compliance and application of standards – coupled with problems in the banking sector and consequent liquidity constraints – have created a challenging environment. Paul Golden writes.

    read more

    Drone technology: audit takes to the skies

    The movement towards a digitised era has already impacted the auditing profession in a number of ways, from blockchain to artificial intelligence. Now firms are taking to sky and using drone technology in their audits. Mishelle Thurai speaks to Big Four firms to find out more.

    read more

    SBC: a new alliance joins the market

    Jonathan Minter speaks to Paul Tutin, chair of founding firm Streets Chartered Accountants, about why the business and its European partners took the decision to launch their own association.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.