Auditors: How can they be appointed independently?

The Financial Reporting Council’s (FRC) newly announced investigation under the Audit Enforcement Procedure (AEP) KPMG’s auditing of Rolls-Royce following the SFO announcement in January of a Deferred Prosecution Agreement for offences including conspiracy to corrupt and a failure to prevent bribery is only the last in a long line of AEPs. And it’s not even the latest one.

PwC and retired partner Stephen Harrison were severely reprimanded and fined £5m, the highest yet, and £150,000, respectively, for misconduct in relation to three areas of audit: mobilisation costs, long-term contracts, and intangible assets relating to the 2009 audit of Connaught. PwC was also ordered to pay legal costs and to make an interim payment on account for these of £1.5 million.

Then in April, an investigation into Grant Thornton and Robert Napper (a retired audit engagement partner) led to a fine of £3.5 million reduced to £2.275 million after settlement discount, and a “Severe Reprimand...