The benefits of tendering and change should outweigh the disruption of existing relationships and mutual trust and the costs and resources deployed in a tender exercise and working with a new auditor
STOP PRESS!
NEW BUSINESSES CAUGHT UNDER ‘PUBLIC INTEREST ENTITY’ (PIE) DEFINITION
"Two consultations, which have just been issued by BIS and the FRC, now clarify the applicability of the new EU Audit Regulation and Directive to smaller and non-quoted financial institutions. The definition of a "Public Interest Entity" is being extended from June 2016 to include all banks and insurance companies of whatever size, where as previously only PLCs and the largest financial institutions were affected. These new PIEs will be subject to the same re-tendering rules, prohibited non-audit services (NAS), 5 year partner rotation and auditor engagement with the audit committee as the largest PLC. From around 2019, they will also be subject to the 70% cap on NAS. This extension of the rules has passed many smaller financial institutions by.

Worse still, the EU Audit Regulation is law and fully applicable in the UK, so breach of these rules is a serious offence. June 2016 is now very close and new PIEs need to understand when the new rules affect them and how. It is quite possible that some will need to organise an audit tender during 2016 so as not to break the law. Audit Review can help. We have a range of services to help firms comply regardless of size and experience".

Our services

Audit Review assists audit committees and management in enhancing their assurance over financial reporting. In doing so, we assist in compliance with the highest standards of corporate governance as reflected in the UK Corporate Governance Code.

There may be many reasons why you review or tender your audit and why you should change internal or external auditors… and each situation will have its own set of priorities. Audit Review will work with you to ensure the objectives of your review or tender are clear at the outset, which will in turn enable an objective process and a focus on the key areas.

Simplified audit review process - illustration

Our independent review and tender services will ensure the process

  • brings a fresh perspective unconstrained by relationships and protocols that may have been in place for many years

  • delivers the most relevant audit approach that focuses on current and future risks and needs

  • leads to new approaches and insights

  • results in a better technical audit, optimising the use of technology and increased assurance

  • increases the value for money of your audit and critically reviews the cost in the light of amounts for non-audit services

  • provides the best team of people to work with – stronger personal chemistry, greater commitment and enthusiasm, and an improved cultural fit

  • allows a fresh and challenging external review of your current control environment, risk management systems and controls.

Our services

go Reviewing external audit effectiveness

go External audit tender management

go Reviewing and tendering internal audit