Other auditors could follow the East Anglian-based accountancy firm’s lead and quit an audit to work more closely with a client.
Ian Brookman, managing partner at Ensors, said that many auditors should re-evaluate their standing with clients that they work with closely.
‘In these situations, it is always a case of “either/or”. Auditors must think carefully in this tough regulatory climate about whether they carry on the audits of clients with whom they have a close business relationship,’ he said.
Ensors has served as auditor to Access since the software company was formed in 1991. ‘We previously had a nominal accountancy software deal with them and others, such as Sage,’ said Brookman.
Access approached Ensors to run a software dealership in the Anglian area. ‘We thought about it and decided we could diversify. However, we realised fairly early on that we would have to give up the audit,’ Bookman said.
Access FD Ian Little said that Ensor’s knowledge of Access software came from their close business relationship that had built up over the last decade. Little said: ‘They’ve seen the potential of the software reselling side of their practice, and given up an audit because of it.’
Little added that the situation was an unusual one: ‘I’ve never come across anything like this before.’
Brookman said his staff had recently completed their Access software training and were ‘now looking forward’ to introducing clients to its products. ‘We place great importance on keeping clients abreast of all relevant advance in technology,’ he added.
For more, see www.ensors.co.uk.
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