Crunch pushes auditors into earlier client talks

Auditors are meeting with clients earlier to focus on their financing arrangements and making sure they can continue as 'going concerns'.

The credit crunch has increased the risk of companies facing liquidity issues and auditors were talking to clients earlier than normal to avoid any shocks, reported the FT.

'For many companies there is a level of consideration we didn't have a year ago,' said Deloitte national technical partner Martyn Jones.

Accountancy Age revealed today that firms have begun ‘summer schools’ to educate junior auditors about warning signs to look for in failing companies.

Further reading:

Firms run 'summer schools' on how to spot companies in trouble

Read the FT's story