Rahman Ravelli's concerns about Auditing are published by Thomson Reuters

Rahman Ravelli wrote a piece that examine problems relating to the auditing profession.

In this article, which was published by Thomson Reuters’ Regulatory Intelligence, Rahman Ravelli highlight the fact that the Financial Reporting Council (FRC) has fined firms a total of over £9 million for their failed auditing of collapsed bond company London Capital and Finance. 

They also cite research from a University of Sheffield think-tank which shows that since 2010 audit firms have failed to raise the alarm on 75% of the UK’s biggest corporate collapses. 

Rahman Ravelli outline the duty of an auditor to “include a going-concern warning if they believe there is a risk that the company may go bankrupt’’ and adds that “these figures have to be viewed as a cause for concern.’’

They detail some of the UK’s most high-profile recent corporate failures and the need for more effective regulation. They say that companies being able to avoid proper scrutiny cannot be good for either their long-term health or for UK business as a whole.

The whole article can be read here.

Featured at: Thomson Reuters