UK Auditors Faulted For Lacking Skepticism, Independence

Law360, London (July 31, 2020, 3:02 PM BST) -- Auditors are not showing enough skepticism and independence when reviewing the accounts of their London-listed clients, the U.K.'s accounting watchdog said Friday as it looked to improve standards in the sector.

The Financial Reporting Council said in its annual enforcement review for the 2019-2020 financial year that British audit companies are failing to exercise professional skepticism and are not obtaining sufficient evidence when inspecting the books of companies.

The regulator warned that it has found that auditors are "too close" to management and so risk not being objective in their work. The FRC also found that managers at accounting firms were...

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