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16 Dec 2014 02:17pm

Moore Stephens falls foul of ISAs

Top 10 firm Moore Stephens has been reprimanded and fined by the ICAEW investigation committee after failing to comply with international auditing standards on two occasions.

Under a consent order, the firm has agreed to pay the fine of £1,500 and costs of £3,005.

According to the agreed statement, in March 2012 and 2013 the firm issued unqualified audit opinions on a client’s accounts for the years ended 30 September 2011 and 2012, in breach of audit regulation 3.10.

This was because it did not conduct the audits in accordance with ISAs 230, Audit Documentation, and 570, Going Concern.

As far as the non-compliance with ISA 230 was concerned, Moore Stephens did not prepare audit documentation that recorded the conclusions reached in respect of the company’s ability to continue as a going concern or the firm’s significant professional judgments made in reaching those conclusions.

The firm also failed to comply with ISA 570 because it did not ensure that adequate disclosure was made in the financial statements highlighting the existence of a material uncertainty surrounding the ability of the parent company to repay a material debt owed by the client company.

Julia Irvine

 

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