Sloppy UK auditors hurt global business – The Wall Street Journal
DUBLIN – The UK has seen numerous auditing scandals over the last few years. In cases ranging from Carillion to BHS, auditors have been shown to be asleep at the wheel, ignoring or overlooking key warning signs of the very financial troubles they are meant to search out. Weak auditing standards and ineffectual auditors have plainly taken a toll of UK businesses. But their impact extends beyond Britain's borders. Many global companies – including some of the world's giants – operate in the UK and are audited locally. If British auditors underperform and ignore problems, these global businesses are at risk of financial problems. Given the global nature of business, underperforming British auditors pose a threat to investors worldwide. It's clearly time for authorities in the UK to take the issue seriously and impose much stricter rules. Right now, it seems that many British audits are not worth the money they cost. – Felicity Duncan
By Paul J. Davies
Audit scandals come and go, but audit regulation stays much the same. The U.K. is having another crack at stamping out poor practices. Once again, it looks like rule makers should go further.
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