UK: FRC report - key facts and trends in the accountancy profession

The Financial Reporting Council has today published the latest edition of its annual publication Key Facts and Trends in the Accountancy Profession: see here (pdf). The report notes - and this comes as no great surprise - that only the 'Big Four' firms now undertake the external audits of FTSE100 companies. The report notes, nevertheless, that there has been an increase in the number of FTSE250 external audits completed by firms other than the 'Big Four'.

European Union: Corporate reporting in the Capital Markets Union after Wirecard

Mairead McGuinness - the European Commissioner for financial services, financial stability and capital markets union - delivered a speech today titled "Corporate reporting in the Capital Markets Union after Wirecard": see here. The Commissioner used her speech to explain that a public consultation on corporate reporting would take place later this year and, in respect of what she termed the three "core pillars to high-quality reporting", she identified various issues that are likely to be considered. 

UK: Brydon Review - terms of reference published

The terms of reference for Sir Donald Brydon's review of the quality and effectiveness of the UK audit market were published yesterday: see here (pdf). The review is wide ranging and will include the needs and expectations of stakeholders, the scope of the audit and assurance. Perhaps surprisingly for a review described as being independent, the terms of reference note that one of the accountancy professional bodies - the ICAEW - has agreed to provide £500,000 towards the cost of the review. It is, however, stressed that all of the organisations supporting the review have recognised the unconditional nature of their contributions.

Sir Donald recently gave evidence before the Parliamentary future of audit inquiry. A transcript of his evidence is available here. All of the evidence - whether oral or written - received by this inquiry can be found here.

UK: The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019

The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 were made on 1 February: see here or here (pdf). They come into force on exit day (except for Part 5 which comes into force later this month). The accompanying explanatory memorandum is available here (pdf). To quote from the memorandum (paras. 2.4 to 2.6):

As a result of the UK’s withdrawal from the EU, references to arrangements with the EU, its institutions and those of Member States, to EU institutions, EU law and concepts under EU law are no longer workable in legislation implementing the Audit Directive. The Audit Regulation forms part of retained EU law under the European Union (Withdrawal) Act 2018 and will therefore continue to apply in the UK as a domestic instrument ... This instrument makes amendments to the legislation that implements the Audit Directive and to the retained UK version of the Audit Regulation. It also grants powers previously held by the European Commission, to the Secretary of State and to the FRC ... This instrument amends references to non-retained EU law, EU institutions and functions exercised by EU institutions contained in UK law ... so that those references instead refer to legislation, institutions and functions that are provided for in UK law".