Auditors are failing to report matters of material significance to the Charity Commission, with analysis showing under a quarter are doing this and most are not meeting the required timescale, despite high profile instances of charity collapse

KPMG has refuted suggestions from the management team at Carillion that delayed and disputed payments on a construction project in Qatar were the reason for the outsourcer’s sudden collapse, in evidence to a select committee inquiry

When a CFO or other top executive of a company being audited was formerly employed by the accounting firm conducting the audit there is a risk from the ‘familiarity threat’ which can undermine audit independence and ‘breed coziness’, according to a report from the American Accounting Association which says the ‘revolving door’ might need to be closed

KPMG’s head of audit as well as the audit partner for Carillion are scheduled to face MPs this week in the latest evidence session, with the inquiry releasing letters indicating that prior to the outsourcer’s collapse, a major shareholder was considering suing over losses incurred due to ‘unreliable’ financial information

The European Court of Auditors (ECA) is calling for an increased emphasis on value added in the EU budget, along with more flexibility and transparency, and greater accountability

A flagship Scottish government policy to double early learning and childcare hours by August 2020 has come under fire from Scotland’s Audit Commission, which says the plans have ‘significant risks’ because of insufficient staffing levels, poor preparations and an estimated £160m funding shortfall

The Big Four have been accused of ‘feasting on what was soon to become a carcass’, after the joint select committee inquiry into the collapse of Carillion found the accountancy firms had billed for £71m of work with the outsourcer since 2008, amid claims the relationships became too ‘cosy’

Cardiff-based Apple chip component supplier IQE has announced it has appointed KPMG as its new auditor, replacing PwC who has held the role since 2005, and has also repudiated claims from hedge funds over its governance and accounting practices

The Financial Reporting Council (FRC) was questioned on its response to Carillion’s collapse at the regulator’s annual priorities meeting, with a panel member from Aberdeen Standard Investments admitting that there were a number of red flags at the outsourcing giant which worried investors

The Financial Reporting Council (FRC) is to introduce a new approach to monitoring the top six audit firms, seeking evidence in five areas while also assessing candidates for key roles such as head of audit, the regulator confirmed at its annual priorities meeting

In our monthly roundup of developments in audit and governance, PwC faces two-year audit ban in India, KPMG quits Grenfell Inquiry role over audit conflicts, Monitoring Group considers single board restructure

The Financial Reporting Council (FRC) has been branded ‘useless’ by a Parliamentary joint committee investigating the collapse of Carillion, while the regulator’s chief executive has called for wider powers of investigation, and suggested more needs to done to encourage competition for audit work