In this month's roundup of accounting news, Toshiba CFOs face courts, Ofcom investigates Royal Mail over audit opinion in regulatory reporting, Kids Company accounting problems highlighted and lack of clarity in AIM financial reports, plus the latest IFRS technical consultations
Ofcom investigates Royal Mail over audit opinion
Royal Mail is being investigated by Ofcom in relation to whether it has complied with accounting guidelines in respect of its audit opinions within its financial statements for the 2013/14 and 2014/15 year ends as a result of compliance issues with Ofcom regulatory reporting.
The investigation is focusing on whether Royal Mail – regulated by Ofcom due to its ‘universal service provider’ (USP) status – has complied with its obligations under USP Accounting Conditions (USPAC) as well as the Regulatory Accounting Guidelines (RAG) in securing an appropriate audit opinion for the year ends in question.
The issue refers to an omission in the audit statement in the regulatory accounts, which failed to state that Ofcom’s regulatory accounting requirements had been met. It is understood that the omission does not have a material effect on the statutory accounts. The audit opinions under scrutiny were overseen by outgoing auditors EY, which has been Royal Mail’s external auditor since 1986.
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