FSA and FRC rekindle audit debate

The FSA and FRC have put forward new proposals which, if applied, would force bank auditors to reveal irregularities in clients’ accounts.

The Financial Services Authority (FSA) and Financial Reporting Council (FRC) have issued a joint discussion paper that considers the role of auditors in regulating the financial sector.

“Investors have a right to expect a more robust approach from auditors in challenging management’s judgements and related disclosures,” said Stephen Haddrill, chief executive of the FRC.

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