Deloitte comments on the FRC’s revised ethical standard for auditors
27 April 2016
Stephen Griggs, managing partner for audit at Deloitte, said:
“There will be a teething period while companies get to grips with the FRC’s Ethical Standard. A lot of this is new territory, particularly for smaller listed companies and unlisted banks and insurers. The new rules will undoubtedly reduce the services public interest entities seek from their auditors.
“For large multinational companies the patchwork of rules implemented across the different member states will add significant complexity. This will require regulators, companies and auditors to work together to resolve interpretation issues in a sensible and pragmatic way that reflects spirit as well as the letter of the regulations.”
In 2014, the European Commission published the European audit regulation and directive, new legislation to reform the EU audit market. It sets a minimum standard on important matters, namely mandatory auditor rotation, the provision of non-audit services, oversight of the audit profession and enhanced auditor reporting for a wider range of companies. The Financial Reporting Council and the Department for Business, Innovation and Skills are implementing the member state options for the UK. The FRC’s revised ethical standard was issued on 27 April 2016 and applies to financial years after 17 June 2016.
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
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The information contained in this press release is correct at the time of going to press.
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