Accountancy

Tougher audit standards fall short on fraud, shareholder group says

Pirc criticised the 'defeatist' text for giving excuses to auditors who miss fraud

Grant Thornton chief executive David Dunckley was blasted by MPs in 2019 after he told a parliamentary committee it was not an auditor's job to look for fraud following the discovery of a black hole in the accounts of cake shop Patisserie Valerie, which his firm audited
Grant Thornton chief executive David Dunckley was blasted by MPs in 2019 after he told a parliamentary committee it was not an auditor's job to look for fraud following the discovery of a black hole in the accounts of cake shop Patisserie Valerie, which his firm audited Photo: Getty Images

Tougher new standards for auditors to detect fraud are a “mixed bag”, shareholder advisory group Pirc has said.

The Financial Reporting Council tightened the rules auditors must follow regarding the detection of fraud in company accounts in a document published on 27 May.

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