Audit Failures

KPMG to kick-off process to elect its next global chair

KPMG is preparing to launch an election process to appoint its next global chair, with succession plans expected to be announced in the first half of 2026, according to Sky News. UK chief executive Jon Holt is considered a strong internal candidate to succeed Thomas. Holt, who took over the…

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EY fined £4.9m over Thomas Cook audit failures

The FRC has fined both EY and a partner at the Big Four firm over their audits of Thomas Cook for the years ended 30 September 2017 and 30 September 2018, prior to the group’s collapse in 2019. EY was fined £6,500,000, discounted by 25% for admissions and early disposal…

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Today’s news in brief – 11/7/2024

In May 2024, the UK’s GDP increased by 0.4%, exceeding expectations, due to improved weather conditions. Construction saw the fastest growth in almost a year, rising 1.9%, with house building and infrastructure projects contributing significantly. The services sector, including businesses like hairdressers and hospitality, grew by 0.3%. Over the three…

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FRC fines MHA £150k over MRG audit failures

The executive counsel of the Financial Reporting Council (FRC) has fined MacIntyre Hudson LLP (MHA) and a former partner and employee, £158,000 in relation to the statutory audit of the financial statements of MRG Finance UK for the financial period ending 31 December 2018 and the financial year ended 31…

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How can an accountancy firm win more audit business?

Recent reports have revealed a serious lapse on behalf of auditors. According to think-tank Audit Reform Lab,  three in four audit reports produced since 2010 have failed to provide warnings that companies, which ultimately collapsed, risked going bankrupt in the year before they ultimately failed. Additionally, Accountancy firms such as…

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ICAEW hits back at claims of declining audit quality

The ICAEW has reported that audit quality has increased since the 2018 collapse of Carillion, in response to fresh analysis that criticised audit firms for failing to issue warnings before three out of four major UK corporate collapses since 2010.    According to the industry body, the report also didn’t acknowledge…

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FRC fines Crowe UK £144,000 for audit failures

The FRC’s Enforcement Committee has fined Crowe UK LLP £144,000 after concluding it failed to comply with regulatory framework for its audit of Aseana Properties Limited’s financial statements for the year ended 31 December 2019. The authority found failures in the reviewed audit, which it considered had been “unsatisfactory and,…

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Today’s news in brief – 8/4/2024

Dunkley’s Chartered Accountants has merged with Gillespie’s, enhancing service offerings for clients in Bristol. The move, reflecting a 20-year relationship between the firms, signifies Dunkley’s growth milestone while maintaining its Bristol headquarters. Lisa White, Dunkley’s director, emphasises seamless client transition and enhanced support for businesses across the South West. Grant…

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Introducing ARGA: the proposed new audit regulator

The UK government has long proposed reforms to the audit and corporate governance framework.  Back in September 2020, Sir Tony Redmond’s Independent review into the oversight of local audit and the transparency of local authority financial reporting had found “serious concerns” regarding the state of the local audit market and…

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Today’s news in brief – 3/1/2024

Opus Restructuring LLP, the insolvency arm of Opus Business Advisory Group, has acquired SKSI Limited and its subsidiary MLM CPS Limited. Fred Satow, former SKSI CEO, now partners with Opus Restructuring LLP. The transaction involves two direct hires and eight indirect hires. SKS Business Services, founded by Sanjay Swarup, remains…

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