Audit regulation: A partial solution expanded
Journal of Financial Regulation and Compliance
ISSN: 1358-1988
Article publication date: 1 January 1999
Abstract
The Department of Trade and Industry (DTI) issued a consultation document in November 1998, which set out a framework for the independent regulation of the accountancy profession. This framework broadly adopts the proposals put forward by the profession itself. In this paper, the focus is on audit regulation. The current regime is outlined and its structural weaknesses and procedural problems identified. The proposed reforms are described and critically evaluated. It is argued that the proposed reforms offer only a partial solution to regulatory concerns, since no changes are proposed to the existing regime either for registration, or for monitoring and discipline of the majority of audit cases. An expanded framework that rationalises current practices and provides a more comprehensive solution is suggested. A critical feature of the proposal is that a distinction is made between audits of small entities and audits of major listed companies, only the latter of which are of public interest. Each would have distinct licensing and monitoring procedures.
Citation
Beattie, V., Brandt, R. and Fearnley, S. (1999), "Audit regulation: A partial solution expanded", Journal of Financial Regulation and Compliance, Vol. 7 No. 1, pp. 31-47. https://doi.org/10.1108/eb024995
Publisher
:MCB UP Ltd
Copyright © 1999, MCB UP Limited