Financial Reporting Council fearful for independence of IASB and omissions in corporate reports and the quality of audit in the credit crunch
The economic crisis has heightened the risks to confidence in corporate reporting and governance to such an extent that the Financial Reporting Council has changed its plans to tackle the threat.
The Financial Reporting Council believes there is increased risk to the independence of the International Accounting Standards Board and that the economic crisis has heightened the risk of directors writing 'errors', or 'making omissions' in their financial reports.
In its new plan for 2009/10 the regulator also believes the concentration of the audit market remains a risk which could result in ‘significant uncertainty and cost’ should one of the major audit firms leaves the market through calamity or through choice.
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