Auditors unwilling to report qualified accounts

摘要

Auditors proved unwilling to report voluntarily to the Financial Reporting Review Panel when qualifying a set of accounts, the FRRP has revealed. The request for voluntary reporting was made in a consultation paper last year, but respondents expressed 'a number of concerns', the panel says. These involved confidentiality, the fact that directors should be responsible, unfairness and the administrative burden. An independent data provider now notifies the FRRP of qualified accounts filed at each quarter, filtered by company size and the nature of the qualification. As of 5 June, the panel had been notified of over 740 qualified accounts, all private limited businesses. The FRRP is writing to more than 50 of the companies concerned, drawing attention to directors' responsibilities for accounts. It will review these companies' next sets of accounts and take 'appropriate action'. The panel has the power to apply for a court order seeking the revision of defective accounts if necessary.