Audit

“Tax officials crafting plan to jointly identify large multinationals with low risk of tax avoidance”

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Source: mnetax.com 7th June 2107

“Eight countries are working on a new program to jointly review large multinationals’ tax affairs and, if appropriate, provide assurances to the multinational that it will not likely be audited in those jurisdictions with respect to specific tax risks, officials said June 6 in Washington at a conference sponsored by the OECD, USCIB, and BIAC.

The program, which will be piloted by Italy, US, UK, Spain, Austria, Germany, Netherlands, and Canada, could eventually be offered by all 47 countries participating in the Forum on Tax Administration, namely, all OECD and G20 countries plus a few others.”

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Accountants Grant Thornton fined £2.3m over audit

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Source: bbc.co.uk 24 April 2017

Accountancy firm Grant Thornton (GT), has been fined £2.3m and severely reprimanded by the Financial Reporting Council (FRC) over failings in its audit of a company called AssetCo.

The regulator said GT, and its partner Robert Napper, had admitted a “lack of professional competence and due care”. This had allowed AssetCo to falsely inflate its value and its share price.

The FRC said that the auditors had been deceived by the management of AssetCo, a fire engine manufacturer once owned by British Gas. But the auditors had been at fault by failing to employ the required level of “professional scepticism”.

The FRC also said that the failings of GT, and the now-retired Mr Napper, in the audit of AssetCo’s accounts were not deliberate or reckless and did not amount to dishonesty. Even so, the AssetCo audits were so poor that the accountants’ behaviour “fell significantly short of the standards reasonable expected of them”, and showed a “widespread lack of professional competence and due care in the performance of the audits.”

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“KPMG US sacks five partners over insider leak”

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Source: economia.icaew.com, 12 April 2017

“Six individuals in total have been let go by KPMG after it discovered they had received advance warnings of what audits were to be inspected by US regulator the Public Company Accounting Oversight Board (PCAOB).

The leaks potentially undermined the integrity of the regulatory process and violated KPMG’s code of conduct.

The firm learned in late February from an internal source that an individual who had joined KPMG from the PCAOB subsequently received the confidential information from a then-employee at the regulator.

KPMG said that it immediately reported the situation to the PCAOB and the Securities and Exchange Commission (SEC).

Following an internal investigation, the firm found that the six KPMG individuals either had improper advance warnings of engagements to be inspected by the PCAOB, or were aware that others had received such advance warnings and had failed to properly report the situation in a timely manner.”

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