Focus on audit report rules

The FT has reported that the Bank of England in its regulatory oversight role is considering fines for audit breaches for banks. The article, penned by Caroline Binham, reports that the Bank of England would have the power to fine accountancy firms for audit rule breaches and also an annual written report should be done by audit firms for the largest deposit taking banks.  

The aim of the exercise is to generate a more "consistent and holistic set of information" for big banks.  Audit firms and individuals that broke rules could be banned or fined by the regulator.  Some market observers still remember audit firms gave large banks, subsequently bailed out months later, a clean bill of health during the financial crisis. Thus these rules would arm the regulator with the disciplinary powers to ensure adequate disclosure.  See this article at http://www.ft.com/cms/s/0/cb7dd0fa-be6e-11e4-a341-00144feab7de.html#axzz3T8ZGAD78.