ICAEW Averts Crisis Over Audit Ethics Rules
Following its second meeting on the subject, the Institute of Chartered Accountants
in England and Wales announced on Wednesday that it has provisionally approved
controversial proposals put forward by the Auditing Practices Board which seek
to prevent the same accounting firm from preparing and auditing a company's
accounts. At a meeting last month, the ICAEW Council voted to delay a decision on the
adoption of the proposed rules by the December 15 deadline, citing concerns
that the APB's rules would impose an unreasonable burden on the UK's SME sector. However, at a meeting on December 1, the Council announced that it would grant
its approval to the guidelines on the understanding that further amendments
are negotiated by the APB with a specially established subcommittee. The compromise proposal is thought to have come about following the revelation
that in the worst case scenario, the ICAEW could lose its status as a supervisory
body if it fails to adopt the rules. However, according to a report from the Accountingweb news service, despite
the Council's provisional approval of the audit ethics guidelines, several of
the panel's members expressed unease at the implications of the proposed rules. .
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