Storm clouds hang over UK

Back in June on this blog, I asked the question whether we were experiencing a calm before the storm, as the effects of the credit crunch, rising fuel and utility prices had yet to be seen in any insolvency stats.

Like the weather this summer, storm clouds are beginning to settle over corporate Britain, too, and now government figures are bearing this out. The liquidation figures for the second quarter of 2008 in England and wales hit 3,689 ­ the worst for five years. A lot has to happen to reach the liquidation levels seen at the peak of the last economic downturn of 1992 (24,425 liquidations in total), but the signs are pointing that way I’m afraid.

Martin Williams, MD Graydon
riskybusiness.accountancyage.com

Is Deloitte the perfect firm?

Given the desire of the Big Four to again rebuild their consulting arms, I re-examined the case of Deloitte. I have written before about the challenges that even Deloitte has in this environment.

As an audit firm, the constraints, regulations and requirements of the new ‘outside’ regulators, the PCAOB, have to take precedence.

Interestingly, even though Deloitte has a consulting arm and an audit arm, it is not the one struggling to comply with the independence rules. They have stayed out of trouble in that regard, that we know of.
It’s the others who still don’t understand about independence, regardless of their past, that are still getting nailed for signing deals that compromise the objectivity and integrity of their audit opinions.
Francine McKenna
www.retheauditors.com

Do recessions raise productivity?

This is certainly theoretically possible. But is it true?
Here’s some scraps of contrary evidence:

Chris Dillow
stumblingandmumbling.typepad.com