Woolf: monetary sanctions useless in isolation

Monetary punishments for the misdemeanours of banks must be supported by meaningful changes to the audit oversight and corporate governance, says Emile Woolf FCA

There is renewed evidence that the efforts of audit firms to expand their consulting activities gives rise to intractable conflicts of interest.

Deloitte in the US has recently been charged with violating auditor independence rules when its consulting affiliate maintained a separate business relationship with a trustee serving on the client’s audit committee and boards of three funds that it audited. Deloitte agreed to pay over $1m (£802,000) to settle charges.

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