Mario Christodoulou, Accountancy Age, Monday 28 June 2010 at 11:38:00

Proposals may suggest structured relationship between auditor and regulator

Auditors may revive their open dialogue with regulators and even work forthem while conducting their audits, as part of new proposals expected to bereleased this week.

The proposals will reopen dialogue between regulators and may lead to theexpansion of so called Section 166 reports, used by regulators to seekinformation on a potential problem area in accounts.

The once healthy relationship between auditors and the Bank of England wasleft to sour when the Tripartite System came into effect in 1997. The new paperwill seek to revive this system under a more structured approach.

Auditors may also be asked to take part in expanded Section 166 reports.Under the proposals auditors may be asked to take on additional work, as well astheir statutory duties, to investigate areas of interest to regulators within acompany.

The measures are part of proposals being considered in the wake of thecrisis, and are part of a wider industry rethink about the value of audit.

Further reading:

Bankauditors eyed for whistleblower role