The head of the UK's financial reporting watchdog warned that European Commission proposals to introduce mandatory joint audits and rotation of auditors risk “damaging” audit and making it more expensive without improving quality.
With the European Commission expected to publish its proposals to reform the audit market within the next few weeks, Stephen Haddrill, chief executive officer at the Financial Reporting Council told a London conference that it was concerned about some if the main reforms to audit that the Commission is expected to make.
“Many of [Barnier’s] proposals are extremely damaging to audit and could increase costs without improving quality,” Haddrill told an Ernst & Young conference on Monday.
His comments, which echo concerns of Big Four accounting firms and the ICAEW about the commission’s proposed audit reforms, are the most outspoken criticism yet from a financial regulator.
About Nick Huber
I’m a specialist business journalist and have a particular interest in tax and technology.