Directors urged to plan for auditor going out of business
3 Nov 08
The Financial Reporting Council is advising audit committees to consider the potential effect of an auditor 'withdrawing from the market'
The guidance encourages audit committees to consider the risks involved and suggests they disclose more information about the process by which the auditor was selected in the annual report. It provides guidance on the factors to be considered if a group is considering engaging firms from more than one network to work on the audit.
The guidance suggests further information on the audit tender process that audit committeees should include in annual reports.