• Home
  • About
  • Subscribe
  • LATIF
  • Conferences
  • Dashboard
  • Edit My Profile
  • Log In
  • Logout
  • Register
  • Edit this post

Room 151

  • 151 BRIEF

    What's New?

  • London CIV appoints Dean Bowden as CEO

    August 18, 2022

  • Coventry secures over £115m of funding to decarbonise transport system

    August 18, 2022

  • Bexley Pension Fund appoints responsible investment consultant

    August 17, 2022

  • Leeds’ £120m levelling up bids offers ‘transformational change’

    August 16, 2022

  • Social care workforce crisis ‘requires government intervention’

    August 15, 2022

  • Consultation opens on future of IFRS 9 statutory override

    August 12, 2022

  • Treasury
  • Technical
  • Funding
  • Resources
  • LGPS
  • Development
  • 151 News
  • Blogs
    • David Green
    • Agent 151
    • Dan Bates
    • Richard Harbord
    • Stephen Sheen
    • James Bevan
    • Steve Bishop
    • Cllr John Clancy
    • David Crum
    • Graham Liddell
    • Ian O’Donnell
    • Jackie Shute
  • Interviews
  • Briefs

CIPFA welcomes report on FRC

0
  • by Ian McDiarmid
  • in 151 News
  • — 19 Dec, 2018

The independent review of the Financial Reporting Council (FRC) has recommended that the body be replaced with an independent statutory regulator, the Auditing, Reporting and Governance Authority, which will have greater powers.

Commenting on the report’s significance for local government Rob Whiteman, CIPFA CEO, said: “It is important that there is strong scrutiny of local authorities’ finances and financial management, particularly at a time when acute financial pressure has led some councils to take on bolder and more risky investment strategies.

“We welcome this report which recognises that, within this changing set of circumstances, the time is now right to reconsider the public audit model and CIPFA looks forward to contributing to playing its part in the process.” 

The review, led by Sir John Kingman, was ordered by business secretary, Greg Clark, following intense scrutiny of the accountancy firms and their regulator, especially after the collapse earlier this year of outsourcer Carillion.

The publication of the Kingman review on 18 December coincided with a report from the Competition and Markets Authority on the accountancy firms themselves.

This called for a separation of audit from consultancy work, and for the way auditors are appointed to be reformed.

The FRC currently regulates auditors, accountants and actuaries in the UK, a role that it performs in conjunction with the relevant professional membership bodies.

The report said: “Two major select committees have accused it, in the strongest terms, of timidity, a lack of pace and excessive closeness to those it regulates.

“These criticisms have put the FRC under an unprecedented spotlight.

“What this spotlight has revealed is an institution constructed in a different era – a rather ramshackle house, cobbled together with all sorts of extensions over time.

“The house is – just – serviceable, up to a point, but it leaks and creaks, sometimes badly.”

Some of theFRC’s failings, the reports says, are due to the way it was set up, and it particular the fact that uniquely among UK regulators it lacks a proper statutory base.

The new body will be responsible to Parliament and the Department for Business, Energy and Industrial Strategy.

The report says it should be funded by a statutory levy on the firms it regulates, rather than on a voluntary basis as is the case now with the FRC, and that it should have a more tightly defined remit.

Get the Room 151 Newsletter

Share

You may also like...

  • Room151 launches survey on IFRS 9 override and MRP impact 9th May, 2022
  • Council’s climate team targets pension fund divestment 28th Jul, 2022
  • DLUHC proposes devolution deal in York and North Yorkshire 2nd Aug, 2022
  • Liability benchmark ‘should not be mandatory’ 29th Apr, 2022

Leave a Reply Cancel reply

You must be logged in to post a comment.

  • 151 BRIEFS – WHAT’s NEW?

    • London CIV appoints Dean Bowden as CEO
    • Coventry secures over £115m of funding to decarbonise transport system
    • Bexley Pension Fund appoints responsible investment consultant
    • Leeds’ £120m levelling up bids offers ‘transformational change’
    • Social care workforce crisis ‘requires government intervention’
  • Room151’s LGPS Roundtables

    Biodiversity
    Valuations & Risk
    LGPS Women

  • Room151’s LGPS Roundtables

    Biodiversity
    LGPS Women
    Valuations & Risk
  • Latest tweets

    Room151 9 hours ago

    Liverpool faces further government intervention as commissioners find ‘whole-council failure’: The levelling up secretary has announced that he is “minded to” expand intervention at Liverpool City Council by transferring the authority’s financial… dlvr.it/SWvgGc pic.twitter.com/cB7YeHZ9lE

    Room151 1 day ago

    Recovery position: withholding tax and the LGPS: Partner Content: Paul Sprenger from WTax talks to Room151 about how Local Government Pension Scheme funds could be missing out on millions of pounds of withholding tax recovery opportunities.… dlvr.it/SWsTfQ pic.twitter.com/z6aVMcaqHe

    Room151 2 days ago

    Treasurer societies favour permanent extension to IFRS 9 statutory override: Two treasurer society presidents have indicated their preference for the current five-year IFRS 9 statutory override to be made permanent following the government’s latest… dlvr.it/SWr3G4 pic.twitter.com/MGf9M5zC8Q

    Room151 3 days ago

    Luton Borough Council faces ‘grave’ £10m overspend: Luton Borough Council faces a £10m overspend in its 2022/23 budget which poses a “serious risk” to the authority’s financial sustainability. A report by Dev Gopal, director of finance, revenues[...] dlvr.it/SWmynD pic.twitter.com/ETDd7sQA48

    Room151 3 days ago

    Luton Borough Council faces ‘grave’ £10m overspend: Luton Borough Council faces a £10m overspend in its 2022/23 budget which poses a “serious risk” to the authority’s financial sustainability. room151.co.uk/funding/luton-… pic.twitter.com/XvyTZckW6m

    Room151 1 week ago

    LATIF/FDs’ Summit ‘on course to be biggest yet’: Room151’s flagship event – the Local Authority Treasurers Investment Forum (LATIF) and FDs’ Summit – is on course to be the biggest yet, with more than 200 delegates expected. Combining[...] dlvr.it/SWSDrL pic.twitter.com/f8FXzcAdWB

    Room151 1 week ago

    ‘Local government treated worse than any other part of public sector’: Clive Betts, chair of the Levelling Up, Housing and Communities Committee, talks to Mike Thatcher about lack of progress on levelling up, pork-barrel politics and why local government… dlvr.it/SWRk1L pic.twitter.com/Jpw0BsOsy3

    Room151 1 week ago

    Which LGPS pools and funds are attending the LGPS Investment Forum on Nov 2 & the LGPS Private Markets Forum on Nov 1st? Answer here: lnkd.in/eDHU8tuy pic.twitter.com/D3gd63Rh7F

    Room151 1 week ago

    LGPS and levelling up: nothing to fear but fear itself: There have been a number of objections to government plans for LGPS funds to invest 5% of their assets in local projects. But George Graham says these objections can be[...] dlvr.it/SWL7vt pic.twitter.com/ebwBEkZTy4

  • Register to become a Room151 user

  • Previous story A New Year’s resolution for partnerships between the public and private sectors
  • Next story High street report proposes new fund and local initiative to arrest decline

© Copyright 2022 Room 151. Typegrid Theme by WPBandit.

0 shares