Mario Christodoulou, Accountancy Age, Thursday 8 July 2010 at 15:42:00

Former treasury select committee chair hears "whsipers" from Lords on auditreform


The House of Lords could be the next to look into auditors? role in thecrisis according to the former treasury select committee chair, who said auditreform remains a live political issue.

Lord John McFall, former chair of the Treasury Select Committee, saidauditors could again be in the crosshairs, this time by the House of Lords.

Speaking to an audience of accountants at an event sponsored by instituteICAS, McFall said he had already heard suggestions audit could be inline forHouse of Lords attention.

?The whispers I had, from my first few days at the House of Lords is that thelords are going to look at the issue of auditors and auditing,? he said.

?My view from the sideline is that there is a long way to go on this issueyet? It is an issue that is on the political agenda.?

Audit reform has crept into the spotlight following a series of officialreform proposals in the last few months. The FRC and FSA released ajoint-discussion paper accusing auditors of displaying a ?worrying lack ofscepticism? when challeneging valuations in banks.

Before this the EU released a paper on the future of banking, which alsosuggested audit reform.

Further reading:

PwCpartner said auditors will not resist crisis reforms

KPMGchief calls for audit reform