Thomas Cook

FRC welcomes BEIS audit reform

The Financial Reporting Council (FRC) has welcomed the consultation launched by the department for business, energy and industrial strategy (BEIS) to reform the UK’s audit, corporate reporting and corporate governance system. The government’s proposals follow on from the growing number of large-scale company failures in recent years. Furthermore, whilst the…

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Gov launches audit overhaul proposals

The government is launching a consultation on audit and corporate governance reforms, following the growing number of large-scale company failures in recent years. The reforms are intended to safeguard British jobs, avoid company failures, and rebuild “people’s confidence in business”. While the government claimed that the UK is a leading…

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KPMG places restructuring arm up for sale

KPMG is reportedly exploring the sale of its restructuring arm and is holding talks with private equity firms.  According to the Financial Times, the ‘Big Four’ accountancy firm has already spoken to potential purchasers, with one source close to the unit revealing the firm has hired Melanie Richards, ex- deputy…

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Coronavirus must not slow the pace of audit reform

Calls for audit reform are nothing new. The accounting industry’s perceived involvement prior to the collapse of companies from Carillion and BHS, to Thomas Cook, has created a clamour for change over a number of years. When 2020 began, it was slated to be a year of positive adjustment and far-reaching transformation. The 138-page Brydon report, published at…

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Government ‘dragging its feet’ on audit reforms, says BEIS

A recent report by the Business, Energy and Industrial Strategy (BEIS) Committee has criticised the UK Government’s inquiry into the Thomas Cook collapse. In its original findings from its Thomas Cook inquiry in October 2019, the BEIS Committee expressed “disappointment’ that the Government had not pressed ahead with audit reforms…

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On the Beach CFO departs following first-half loss

The chief financial officer of On the Beach, Paul Meehan, has announced his departure after revenues fell two-thirds in the first half of the year, due to the coronavirus pandemic. Meehan, who  joined the online agent in 2017 succeeding Wendy Parry to the position, will leave the company on 17…

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Tesco CFO Alan Stewart announces plans to step down

Tesco has announced that CFO Alan Stewart has decided to retire from the position and leave the company on 30 April 2021. The company board is now conducting both an internal and external search to identify a successor. Stewart joined the grocer in 2014, as a member of the board…

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The real role of the auditor

External auditors review financial statements to ensure they are a ‘true and fair’ account of past financial performance and current financial position. In the spate of recent company failures the public were quick to blame the auditors for failing to identify issues. In October 2019 for example, Thomas Cook’s auditor,…

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FRC extends Thomas Cook investigation

The Financial Reporting Council has announced it will be extending it’s investigation into the audit of Thomas Cook by EY following its collapse in September. It said the “matters” being investigated by the FRC concerning EY’s audit of the financial statements of Thomas Cook will now include an investigation into…

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Auditors ‘complicit’ in company failures, Thomas Cook inquiry says

The ‘Big Four’accountancy firms have been “complicit” in a number of high-profile business failures such as that of Thomas Cook, the chair of the House of Commons’ business, energy and industrial strategy committee has claimed. Labour MP Rachel Reeves made the claim while partners from EY and PwC, Thomas Cook’s…

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