According to Britain's accounting regulator, accounting services supplied by auditors such as Ernst & Young LLP should not be prohibited because of the economic recession.According to the Financial Reporting Council of the United Kingdom, companies that employ a contractor accountant for bookkeeping in Frimley services should still be available to businesses that require their services.
This announcement was made after EU members proposed a prospective prohibition on non-audit services in October.The regulator's response to this proposal was that it would not help the United Kingdom recuperate from the financial crisis because it would anger investors in the British market.However, according to a Bloomberg article, it has announced that it will support a "tightening of the rules" on accounting services.
On the agency's website, a representative stated, "There is no evidence that the provision of non-audit services by auditors was a factor in the financial crisis."There is no support for this prohibition from any stakeholder group, and investors are widely opposed to the concept."
In an interview with Bloomberg, Jeremy Jennings, partner at Ernst & Young, stated that the auditing firm completely supports the Financial Reporting Council's recent announcement.In a recent company statement, he stated, "Providing the widest range of permissible services increases a firm's understanding of the organization and its risks and processes, all of which contribute to audit quality."
In October, the European Commission also announced that prohibiting non-audit work would result in audit firms becoming more "pure" because they would have no interest in the company they have been hired to Br4Accountants. In a green paper, the Commission stated, "Since auditors provide an independent opinion on the financial health of companies, they should ideally not have any business interests in the company being audited."
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