Other Changes
Improving audit quality
Changes in this area include:
- the introduction of a new criminal offence for an auditor to knowingly or recklessly include anything that is materially misleading, false or deceptive in an audit report
- the ability for companies to be able to agree a limit on their auditors' liability arising from an audit for a specified year, subject to shareholders approving the main terms of the agreement. The amount of the limit must be 'fair and reasonable' in order to be effective
- audit reports for accounting periods beginning on or after 6 April 2008 will be signed by the 'senior statutory auditor' in their own name, for and on behalf of the firm.
Auditors will also be required to include in their report if the directors have prepared accounts in accordance with the small companies regime and in the auditors' opinion, they were not entitled to do so. There are also now provisions in place for the audit report to disclose the required particulars of any disclosures regarding directors' benefits that have not been made in the accounts.
A private company may choose whether to appoint a company secretary or not
The legal requirement for a private company to appoint a company secretary has now been abolished, although public companies will continue to be required to appoint a company secretary.
A private company does however have the option to choose to appoint a company secretary if it wishes, as many of the functions that the company secretary traditionally carried out remain. The details of any company secretary appointed will continue to be required to be registered at Companies House.
|
C o m p l e t e
Regulated
to carry on audit work for a range of investment business
activities by the Institute of Chartered Accountants in England
and Wales