'Bosses should report accounting standard breaches'

News Article - 02 August 2007
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It should not be the job of an auditor to notify the Financial Reporting Review Panel (FRRP) when a company's financial statements have contravened accounting standards, it has been claimed.

According to the Institute of Chartered Accountants in Scotland, it should be up to a business' directors to report any breaches.

The view comes in light of a recent consultation by the FRRP on whether it should be able to gain early notification of reports where accounting standards have been breached.

James Barbour, Director of Accounting and Auditing at ICAS, said that the institute agreed that such a proposal was in the public's interest, but added that "since the accounts are the responsibility of company directors, the duty to inform the FRRP of qualifications should lie with them, rather than with the auditors".

Last month, the FRRP published a consultation paper which aimed to enhance the quality of financial statements produced by firms every year.

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