PracticeAuditCrunch pushes auditors into earlier client talks

Crunch pushes auditors into earlier client talks

Auditors go in early to work with clients on their books over credit crunch concerns

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

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