LONDON (Reuters) – Britain’s accounting watchdog on Thursday tightened fraud prevention requirements within the wake of sharp criticism by parliamentarians after the high-profile collapses of corporations comparable to retailer BHS and builder Carillion.
The Financial Reporting Council (FRC), criticised by lawmakers for being too timid in regulating auditors, mentioned it wished to extend readability about an auditor’s obligations.
The revisions, efficient for audits of intervals starting on or after 15 December, embody extra stringent necessities to determine and assess the chance of fabric misstatement due to fraud and the procedures to answer these dangers.
The FRC announcement comes amid a government-led plans to revive belief in audit and company governance.
This consists of statutory necessities for administrators to report on the steps they’ve taken to stop and detect materials fraud and for auditors to report in relation to such a director’s assertion.
The FRC is present process an inner transformation to turn into the extra highly effective Audit, Reporting and Governance Authority or ARGA.
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