It goes without saying that Insolvency Practitioners must behave honestly and with integrity in all their professional dealings. IPs must handle money and assets in a way which justifies the trust placed in them, but some professionals don’t realise that the way they behave on a Saturday night may be just as relevant to their ability to continue in their chosen profession as the way they behave on a Monday morning.
In October the ICAEW updated its Guidance on the Duty to Report Misconduct. The ICAEW first issued Guidance on this topic way back in 1993. While amendments have been made since then to update references to legislation, bye-laws and guidance, this is the first wholesale re-issue. So what’s changed? The fundamental principle that it’s in the public interest to report matters which, if left unreported, could adversely affect the reputation of the profession, remains the same . However, there are some quite significant changes to the detail of what should be reported, reflecting a shift in attitudes since 1993 in the requirements and expectations of professionals. The new Guidance adds to this the need to report matters which, if left unreported, could adversely affect the reputation of the ICAEW, as the regulator.
In our blog series, we have dealt with how the accountancy regulators put their spotlight on audit quality, and how firms should prepare for an audit quality visit from their regulator to ensure that it goes as smoothly as possible.
In the second blog of our audit series, Julie Matheson and Sarah Harris discuss the FRC’s recent Audit Quality Inspection report, describe how the FRC uses its powers to uphold audit quality and provide some tips on what to do if the FRC opines that one of your firm’s audits needs more than limited improvements.