A HIKE in the number of audit inspections to be carried out by the FRC has placed “considerable pressures” on its budget, the reporting watchdog has warned.
In order to deliver on requirements set down by the Competition Commission as part of its investigation into the large-listed audit market, the number of audit inspections undertaken by the FRC will increase 25% in 2014/15, with further increases over the following two years.
In its plan and budget for 2014/15, the FRC said the costs for increasing its inspection work and its disciplinary work, which will increase as more cases are brought to tribunal, will result to an increase in its levies.
The FRC plans to increase its levies on large account preparers by 4.8%, typically equivalent to £1,220 p.a. on average; on smaller companies by 2.2%, equivalent to up to £160 p.a.; and on the professional bodies by 2.2% on top of specific charges for disciplinary and audit monitoring work.
The UK’s imminent exit from the EU that may now put the audit committee to the ultimate test
Three former Tesco executives, including the former finance director of Tesco UK, have been charged with fraud in relation to a £263m accounting scandal at the supermarket chain
A group of investors have made fresh calls for the UK’s largest listed companies to disregard the accounting advice of reporting watchdog the FRC
The FRC has scrapped its probe into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal.