Being hauled in front of a Treasury Select Committee might be just the
beginning of a trying year for auditors at big accountancy firms.
An internal memo to auditors at one big four firm noted that it wouldn’t be
“business as usual” in the year ahead, the Financial Times reported.
As the fallout from the credit crunch spills over to the broader economy,
trouble over accounts is inevitable. Auditors can be seen as a convenient
scapegoat and are likely to come under intense media scrutiny.
Meanwhile big four firms are getting their staff up to speed with what to
look for in a downturn, such as earnings overstatements and fraud as managers
attempt to cover up bad news.
MHA MacIntyre Hudson has partnered with cloud accounting software provider Xero ahead of the government’s requirement for digital records
Smaller businesses could be excluded from government plans for making business transactions digital, found new research from ICAEW
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Further powers are being sought by HMRC, but it is ‘failing’ to use those it already has, such as Conduct Notices, says RPC