Are we becoming proactive?? Via Accountancy Age.
The Auditing Practices Board (APB), which devised the rules due for release later in the week, will ban audit firms from offering detailed restructuring guidance which they may later have to examine as part of their audit.
Auditors will instead be allowed to offer preliminary, general restructuring help, and also challenge restructuring plans, in particular circumstances.
The APB wants to stop auditors from providing detailed help to their financially distressed clients, which they may then have to objectively review. But, in the process, the APB rules may limit the fee revenue auditor's receive from restructuring work.
Auditors are often the first contact point for companies in distress and are considered well placed to refer work to other departments within their firms. Investors, however, fear auditors may have their independence compromised if they have to pass judgment on work completed by others within their own firm.
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