FRC pushes for more sceptical auditors
Measures need to be put in place to improve professional scepticism when it comes to the auditing process.
This is according to the Financial Reporting Council (FRC), which was speaking after the publication of its Audit Quality Inspections Annual Report 2012-13. While improvements have been made on this issue, the body still thinks more can be done.
In order to return the most accurate auditing results possible, individuals working in the sector are always encouraged to have a questioning mind in order to spot any possible misstatements, which may be due to human error or fraud.
According to the FRC, it is important to recognise the great strides that have been made with regards to professional scepticism, but smaller audits in particular need to be overhauled.
Paul George, executive director conduct at the organisation, said: "Audit makes a vital contribution to investor confidence in financial statements. We are pleased to see in this year’s results that firms' efforts to address our concerns on professional scepticism are bearing fruit, particularly in the FTSE 350.
"It is important that further improvements are more uniformly and consistently achieved across all entities and by all firms."
The FRC report highlights include an improvement in the overall quality of audits - 59 per cent of those carried out on FTSE 350 firms were categorised as good or acceptable after being inspected.
Some 15 per cent of audits inspected were found to need significant improvement, which is up from the 2011-12 figure of ten per cent. This demonstrates how policies can still be overhauled in an effort to tighten up the whole process. Indeed, focusing on audit quality is the main recommendation to come out of the report.
The FRC is currently preparing for a change at its top table, as Baroness Hogg is stepping down as chair of the organisation after three years in the role. While her term ended in April, she has agreed to stay on until a suitable replacement is found.
Signup to receive the latest discipline specific articles
Related articles
Teaser
TechnologyContent Type
General
19/03/24
Summary
The year 2024 emphasises the crucial role of RegTech — a beacon guiding firms through the evolving global regulatory landscape, enabling them to connect the dots between short-term challenges and
by
Paul Roche
Teaser
TechnologyContent Type
General
19/03/24
Summary
The UK tech sector retains the number 1 spot in Europe and number 3 in the world as sector resilience brings continued growth. With this demand comes stiff competition. London offers a wide range
by
Ghazal Mayahi
Teaser
GeneralContent Type
Career Advice
19/03/24
Summary
Are you considering a change of scenery? Just look at London - an incredibly diverse city, with over 1,600 languages spoken and 300 nationalities represented. At the centre of the UK's 4.2 milli
by
Kelvin Murphy
Related jobs
Salary:
£150,000 - £175,000 per annum + equity, bonus and benefits
Location:
London
Industry
Technology
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin executive is working with a PE Backed, International Software business, going through a period of rapid organic growth
Reference
TA 3225
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£180,000 - £200,000 per annum + Equity, Bonus and Benefits
Location:
England
Industry
Professional Services
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin executive search is working with a PE Backed Financial Services business is seeking a Best-In-Class CFO
Reference
TA 3224
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£180,000 - £200,000 per annum + exit bonus, benefits
Location:
London
Industry
Technology
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin Executive Search has an exciting opportunity for a CFO to join a PE Backed Tech Enabled B2B business.
Reference
TA 3223
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£180,000 - £200,000 per annum + Equity, Bonus and Benefits
Location:
West Midlands
Industry
Consumer & Retail
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin Executive Search is working with an Established multisite wholesale Distribution business
Reference
TA 3222
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£150,000 - £175,000 per annum + Equity, Bonus and Benefits
Location:
London
Industry
Consumer & Retail
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin Executive Search is working with a rapidly growing Fashion Retail business.
Reference
TA 3220
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£150,000 - £175,000 per annum + Equity, Bonus and Benefits
Location:
Yorkshire and the Humber
Industry
Business Services
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin Executive Search has an exciting opportunity for a CFO to join a PE Backed infrastructure business
Reference
TA 3221
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£180,000 - £200,000 per annum + Equity, Bonus and Benefits
Location:
England
Industry
Professional Services
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin executive Search is working with an international PE-Backed Buy and Build Corporate Services Business.
Reference
TA 3219
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£45,000 - £47,000 per annum
Location:
Doncaster, South Yorkshire
Industry
Manufacturing
Qualification
Finalist / Newly qualified
Market
Commerce & Industry
Salary
£40,000 - £50,000
Job Discipline
Newly Qualified Finance
Contract Type:
Permanent
Description
Finance Business Partner // Manufacturing // £45,000
Reference
BBBH179631
Expiry Date
01/01/01
Author
James MetcalfeAuthor
James MetcalfeSalary:
£45,000 - £50,000 per annum
Location:
Sheffield, South Yorkshire
Industry
Manufacturing
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£50,000 - £60,000
Job Discipline
Qualified Finance
Contract Type:
Permanent
Description
Management Accountant // Manufacturing // £50,000
Reference
BBBH179802
Expiry Date
01/01/01
Author
James MetcalfeAuthor
James MetcalfeSalary:
€35,000 - €43,000 per annum
Location:
Amsterdam, North Holland
Industry
Professional Services
Qualification
Part qualified
Market
Commerce & Industry
Salary
£35,000 - £40,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Permanent
Description
Momenteel zijn wij op zoek naar een Financial Accountant voor een internationale HR Dienstverlener. Met 5 miljard omzet begeven zij zich in de TOP 5 niet-beursgenoteerde HR-dienstverleners ter wereld
Reference
BBBH179786
Expiry Date
01/01/01
Author
Guido BuwaldaAuthor
Guido Buwalda