UK watchdog rams home good audit practice after company collapses

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Britain's accounting watchdog published what it believes to be the world's first regulatory guide to what makes a good audit, to help stem company collapses and continued compliance failings

It is part of a broad effort to improve auditing standards, with Britain due to set out legislative reforms in coming weeks after failures at retailer BHS, builder Carillion and cafe chain Patisserie Valerie prompted three government-backed reviews.

Regulators focus on poor compliance and typically don't define what is good practice, but there is increased pressure to improve quality given that only 71% of audits inspected by the FRC meet the relevant standards, the rest having to be modified.

 

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