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Stephen Haddrill, CEO, FRC sees the light and gets tougher.

Stephen Haddrill, head of the Financial Reporting Council, appeared before MPs in one of a series of hearings held by the Commons Business, Energy and Industrial Strategy Committee to examine the future of the auditing industry in the wake of a number of scandals involving overstatement of profit and insolvency. When asked whether the FRC and other regulators were “too passive and reactive”, Mr Haddrill acknowledged that he should have been less afraid to challenge companies in the courts and less accepting ...

Flybe, InterServe, Jackals, Vultures and BEIS progress on Insolvency Laws

Flybe is another example of the problems of the insolvency system not working very well. @LucyGJWhite explains it well in today's Daily Mail https://www.dailymail.co.uk/money/markets/article-6671393/Investor-anger-cut-price-Flybe-takeover.html which quotes me. It is shocking that the directors rejected a merger deal at 40p and now are recommending a 1p deal - they should be ashamed. The UK Shareholders Association/ShareSoc wrote a very good response to the BEIS Consultation on Insolvency and Corporate Governance https://www.gov.uk/government/consultations/insolvency-and-corporate-governance. Click here for our response https://www.sharesoc.org/wp-content/uploads/2018/06/BEIS-Consultation-on-Insolvency-and-corporate-Governance-joint-UKSA-ShareSoc-response1.pdf. We made the very important point: In the US, Chapter 11 ...

AssetCo, Patisserie, Stockpiling, Warehouses, Sheds, Brexit and Venezuela

A week ago, an award of damages of £21 million plus interest and costs was made against Grant Thornton for their breach of duty when acting as auditors of AssetCo Plc (ASTO) in 2009/10. See https://www.bailii.org/ew/cases/EWHC/Comm/2019/150.html for the full judgement. I understand Grant Thornton may appeal. These are the key sentences in the judgement: It is common ground that in those years the senior management team at AssetCo behaved in a way that was fundamentally dishonest. During the audit process management made ...

FRC Review of Auditing Standards – They’re Looking At The Wrong Things

The Financial Report Council (FRC) have recently published a “Post Implementation Review: 2016 Ethical and Auditing Standards”. It concentrates on the changes made in 2016 to improve the independence...

Staffline Issues, Audit Purpose and Patisserie

Yesterday Staffline Group (STAF) issued a statement first thing in the morning saying that the publication of results scheduled for that day would be delayed. The shares promptly dropped...