BDO Stoy Hayward's managing partner has warned that the year-end reporting season will be a tough period for auditors and their clients, because jittery investors could take drastic steps in response to 'going concern' warnings.

Auditors are preparing to sign off annual reports as the year-end for many companies draws closer, but Simon Michaels said that the effect of adverse opinions would be even more marked as the hostile economic conditions continue.

'There's clearly going to be a challenging season of audits, with more uncertainty with the financial market where it is, about "going concern,"' said Michaels.

'It really is incumbent upon the profession to do everything they can to help management teams provide the clarity with regards to disclosures and reporting, but also working with the banking industry so that where there are committed facilities, which remove a degree of uncertainty around going concern, it doesn't create a downward spiral which is compounded as investor confidence, supplier confidence and credit insurer confidence is affected by a greater incidence of going concern qualifications.'

His comments came as BDO released its annual revenues for 2007-2008. The firm posted 11% growth in revenues to £353.1m for the year ended 4 July with profits of £65m. The firm has also been boosted by winning a number of high profile assignments including the valuation of Northern Rock and the receivership of financial heavyweight Dawnay Day.

However Michaels predicted that revenue growth would tail off next year and the firm would post single digit growth. 'I think [the growth] will be steadier next year, probably nearer single digit than double digit growth and I think that will be a profession-wide trend.'

The firm has been pushing for more transparency in the audit market and Michaels welcomed the FRC's audit inspection unit reports which are due out next month.

'Its about giving the market confidence in what the profession is doing, but it's more about challenging the institutional prejudices that exist where people think it’s a safer bet to buy Big Four and our view is that there is more choice out there.

'The position is compounded by Big Four only clauses [in audit contracts] and we will lobby to have those removed, because that does limit our ability to drive the practice forward.'

Simons added that he relished the challenge of taking BDO forward as the hostile financial conditions continued.

'When I was appointed managing partner, I couldn't have predicted that the financial markets were going to completely collapse, but that's where the challenge is. A real test of leadership is how you work with your colleagues to navigate a way through more interesting times. I wouldn't have wanted it any other way, in some respects.'