The primary argument of this paper is, namely, that the International Accounting Standards Board (IASB), is in need of an enforcement mechanism. In drawing attention to this argument, the paper not only proposes considerations which are to be taken into account if such a mechanism is to be...

This paper focuses on how the external auditor can assist the FSA through two of its principal regulatory tools in the FSA's response to risk, namely supervision and enforcement. The external auditor has a vital role as a supervisory tool in reporting certain matters as obliged by the Financial...

The audit expectations gap is of serious concern to the UK accounting profession with the Department of Trade and Industry proposing a new framework for independent regulation of the accounting profession. However the new Accounting Foundation has had its role placed under review following the...

Following the collapse of Enron, many questions have been raised as to why the UK has avoided its Enron. Many commentators have considered whether this is due to the fact that the UK's system of financial regulation relies more on a principles based system, which promotes more fairness in its...

One reason put forward for the decision to grant the Bank of England greater powers is the opinion that 'Technocrats are thought to do a better job of ensuring financial and price stability than politicians, because their decisions are not distorted by the pressure to win elections.' Even though...

Rules, Acts and regulations play an immensely huge role in influencing the quality of audits, as well as facilitating a harmonized system of rules – which in turn, will facilitate better interpretation of accounting standards whilst reducing confusions which could arise as a result of undue...

The incoming Labour administration in 1997 caused a stir when it gave the Bank of England additional monetary policy powers but removed the Bank's powers to regulate banking. Up till 1997, banking regulation had been the function of the Bank of England while other areas of financial services had...

Up until 1989, there existed “the Big Eight” accountancy firms namely the eight major international accountancy firms, Arthur Young (AY), Ernst & Whinney (EW), Deloitte Haskins & Sells (DHS) ,Touche Ross (TR), Price Waterhouse, Coopers and Lybrand, Arthur Andersen and KPMG. At present, there...

From the responses received from the European Commission's consultation on control structures in audit firms and their consequences on the audit market, a consultation which was launched in November 2008, and whose deadline was scheduled for the end of February 2009, the role played by the...

“A critical audit matter is defined as a matter that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved especially challenging, subjective, or complex auditor...