Audit Reform

Looks like the audit industry in Britain is headed for a shake up after the accounting scandals like BHS and Carillion in the previous years.

Today reported on the changes that would be proposed and the most interesting one would be that of making directors responsible for detecting fraud. It was only just last year that the idea of revising audit standards so that auditors are responsible for detecting fraud was bandied around. This change from Britain, if passed, would definitely be an impact on how the International Audit Standards would be changed.

Interesting enough, one wonders if Britain deliberately waited until Brexit was a done deal to make these changes. There would certainly be less consensus sought from their European counterparts now that Britain is no longer part of the Union.

On a lighter note, their Financial Reporting Council is being renamed to Audit, Reporting and Governance Authority or ARGA for short. One can say, arga arga, theirs now sound like our ACRA...

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