In our monthly roundup of developments in audit and governance, corporate governance code needs overhaul, FRC sanctions review plan, Deloitte in fashion at SuperGroup, PwC slips up with PZ Cussons loss  

Troubled Japanese electronics company Toshiba is believed to be seeking to replace its auditor after current incumbent Japan based PwC Arata said it was unwilling to sign off on the company’s accounts over issues related to its US nuclear reactor subsidiary Westinghouse Electric, which is filing for bankruptcy

The International Auditing and Assurance Standards Board (IAASB) is consulting on proposals to significantly overhaul ISA 540, the auditing standard which governs how auditors evaluate accounting estimates and related disclosures

The Financial Reporting Council (FRC) has fined Grant Thornton UK £2.275m and given retired partner Robert Napper a three-year ban and a £130,000 fine after its investigation identified a range of ‘widespread and significant’ failings in work on the audits of AssetCo plc, a provider of  outsourced fire and rescue services and equipment

FTSE 250 pharmaceutical specialist the Vectura Group, which supplies products for the treatment of lung disease, is to appoint KPMG as external auditor from the 2017 financial year, replacing incumbent Deloitte after a decade

The Chartered Institute of Internal Auditors (CIIA) says a spate of recent high-profile data breaches and the introduction of new regulations mean internal audit has a critical role in providing advice and assurance around cyber security

The three UK charity regulators have issued new joint guidance setting out what auditors and independent examiners must report, including a revised list of matters of material significance

The head of the audit practice at KPMG’s US firm, along with four other partners and one employee, have been asked to leave after it was discovered they had received improper advanced warning of regulatory inspections by the Public Company Accounting Oversight Board (PCAOB)

FTSE 100 global infrastructure software business Micro Focus International is to replace current external auditor PwC with KPMG for the year ending 30 April 2017, ending a contract worth $6.2m (£4.9m) after 12-years

The European Commission uses too many performance measures to assess how EU member states plan their spending, and a number of important definitions for financial reporting are not consistent, according to a report from the European Court of Auditors (ECA)

Ireland has adopted the Financial Reporting Council (FRC) auditing framework for the UK, following feedback on the Irish Auditing and Accounting Supervisory Authority’s (IAASA) consultation over which existing audit framework should be adopted by Ireland