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Audit governance code under watchdog review

The Audit Firm Governance Code is to come under review after the Financial Reporting Council decided to reassess how the code is being implemented and managed.

It is looking for ways to strengthen the code in a bid to place more emphasis on governance of, and the public’s interest in, audit work undertaken within a firm’s entire business.

The finance body has further asked for an independent point of view at a global level within the firm’s international networks.

The code, established in 2010, offers a benchmark of quality governance practice. The benchmark is used by firms responsible for auditing listed companies so that they can provide a report for an investor’s benefit.

Stephen Haddrill, chief executive for the FRC, said there is no obligation to implement the code but those firms that have adhered to it have reaped the rewards of greater governed businesses.

He explained:

“The report suggests that the principle of external challenge be adopted in the international network organisations as well as at national level. As the firms grow their consultancy businesses this challenge should remain focused on the audit practice as well as across the firm as a whole.”

The government seems to be always looking for ways to improve the governance of firms, and it can be a confusing subject for business owners whose strength doesn’t lie in accounting. Fortunately, an accountant in the Wirral can not only help the owner understand the laws of the land, but can also take care of the books and anything else that clients need to implement.

Posted by Mark
June 3, 2015
Finance

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