News Article - 22 May 2012
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An update to a guidance note on investment business audits has been produced by the Auditing Practices Board (APB).

Following the proposal of a revised version of Practice Note 21, entitled The Audit of Investment Businesses in the United Kingdom, in a consultation in March 2006, the final draft has been produced.

The board reports that the publication of the practice note was delayed until legal and FSA (Financial Services Authority) changes were made this year, including the introduction of the Markets in Financial Instruments Directive (MiFID) and the removal of the requirement for auditors to report to the FSA under handbook section SUP 3.9.

Richard Fleck, chairman of the APB, said he hopes the guidance is "helpful" for auditors.

"There have been a number of recent changes in law and regulation relating to investment businesses particularly caused by the introduction of the MiFID, which are reflected in this revision of Practice Note 21," he commented.

Established in 2002, the APB is part of the Financial Reporting Council.

Article keywords: <img src='http://pictures.directnews.co.uk/liveimages/England+Bank+of_700_18913398_0_0_7001384_300.jpg' align='right' style='width:150px; margin-left:10px;' />Interest rates have been cut by one per cent by the Bank of England's Monetary Policy Committee (MPC), leaving the base rate at two per cent.<br/><br/>It means the base rate is at its lowest value since 1951 and has never been lower in the Bank's 314-year history.<br/><br/>The cut was widely predicted by analysts, although the exact size had been a matter of debate.<br/><br/>As with the previous cut of 1.5 per cent in November, the government has urged banks to pass on the cut to consumers and businesses.<br/><br/>A number have already stated that they will, including Lloyds TSB, RBS and HSBC.<br/><br/>However, some analysts have said that further cuts will be needed to help the economy, which would set the rate at an unprecedentedly low level.<br/><br/>Willem Buiter, a former member of the MPC from the London School of Economics, told BBC Radio 4 before the Bank announcement that the rate would eventually be set to zero and said it should be done immediately.<br/>

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