More NewsFSA and FRC Extend Co-operation on Audit Issues

FSA and FRC Extend Co-operation on Audit Issues

The Financial Services Authority (FSA) and the Financial Reporting Council (FRC) have agreed a new memorandum of understanding (MOU) to enable a greater degree of co-operation and information exchange between the two regulators. The
MOU underpins the increased dialogue between the FSA and FRC on accounting and disclosure issues that has been in place since 2005 and follows the publication of a joint discussion paper on the audit of financial institutions published in June 2010.

The new agreement will deliver a closer working relationship between the FSA and the FRC’s Audit Inspection Unit (AIU) and will enable both organisations to improve their oversight of the audits of authorised firms. The AIU operates a risk-based system of audit inspections and its scope has been extended recently to include all banks incorporated in the UK to better support markets and the prudential regulator.

The FSA and FRC will assist each other in the performance of their respective functions by providing timely information, subject to any legal constraints. Where information shared is subject to confidentiality undertakings both regulators will handle the information in accordance with those requirements.

Paul George, director of auditing at the FRC, said: “It is vital that audit serves the interests of the UK’s capital market by providing relevant and high quality information to prudential regulators as well as the market. This agreement ensures that the dialogue established during the financial crisis is both durable and meaningful. By working more closely with the prudential regulator we will enhance our collective ability to identify and correct weaknesses in the quality of audited information being provided to regulators and the market.”

Related Articles

Infosys Finacle to power Santander UK’s international cash management system

More News Infosys Finacle to power Santander UK’s international cash management system

3w The Global Treasurer
Preparing for GDPR? Here’s four things to consider

More News Preparing for GDPR? Here’s four things to consider

4m Elliott Wiseman
Cash flow in focus for investors

Cash Management Cash flow in focus for investors

5m Conor Deegan
Treasury TV: Karen Pugsley, Domino's Pizza Group

More News Treasury TV: Karen Pugsley, Domino's Pizza Group

5m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

5m Victoria Beckett
Treasury TV: Tim de Knegt, The Port of Rotterdam

10 Minutes With The Treasury Treasury TV: Tim de Knegt, The Port of Rotterdam

5m Victoria Beckett
Banks are selling clients short with short dated cash deposit U-turns

Banking Banks are selling clients short with short dated cash deposit U-turns

5m Victoria Beckett
What does sterling’s Brexit boost mean for UK manufacturers?

More News What does sterling’s Brexit boost mean for UK manufacturers?

6m Tasja Botha