LONDON Jan 30 Accountants will have to
determine more thoroughly if a bank can stand on its own two
feet without taxpayer help for well over a year under draft
changes put forward by Britain's audit regulator on Wednesday.
The Financial Reporting Council (FRC) said auditors like
KPMG, PwC, Deloitte and Ernst &
Young would have to examine in-depth threats to a
company's business model and capital adequacy through the
economic cycle for the sector a company is in.
The planned reform stems from anger among UK policymakers
that auditors gave banks a clean bill of health just before
taxpayers had to shore them up in the 2007-09 financial crisis.
Currently auditors only attest to a company as a "going
concern" for the following 12 months, but an inquiry by Lord
Sharman recommended a longer period and wider criteria.