Auditors to be given recession advice
Auditors are expected to receive pointers to help them pick up irregular accounting policies at the end of the month.
The Auditing Practices Board is still working on the guidance on ‘aggressive earnings management’, of manipulation of accounts.
Jon Grant, technical director at the APB, said the guidance is on the agenda for the next board meeting and should be out shortly.
The move is hoped to prepare auditors for the imminent downturn in the economy that is widely expected to lead to increased pressures on company directors to hit targets. This in turn could lead to a manipulation of figures.