64% of finance talent seek firms with D&I policies, ACCA finds

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Gen Z talent are more likely to put D&I at the forefront of their job search, with 76% of this age group rating it as a key factor in their choice of organisation Some 64% of UK finance professionals have … Read More

Big Four US Firms admit to audit regulation breaches

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The Public Company Accounting Oversight Board urged companies and investors to pay greater attention to the findings of its annual inspections of audit firms The Big Four accounting firms have admitted hundreds of violations of regulations in the US that are designed to … Read More

AI is an emerging risk for auditors, new research shows

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Artificial intelligence has been identified as an emerging risk, with gaps in organisational preparedness and audit proficiency, according to new research from Protiviti. In partnership with The Institute of Internal Auditors (The IIA), Protiviti conducted its 11th Annual Global Technology … Read More

The auditors of the Post Office have questions to answer about why they did not flag accounting failures in the Horizon IT system

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Post Office auditors should be questioned, MPs told MPs on the Business & Trade Committee questioned the bosses of Fujitsu and the Post Office, Lord Arbuthnot and lawyers at a hearing about the Post Office and Horizon compensation scheme. Witnesses … Read More

FRC chief rejects criticism of tough audit investigations

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Richard Moriarty, CEO of the Financial Reporting Council (FRC) has defended the regulator’s investigations into audit firm misconduct saying ‘fear of enforcement sanctions’ will not make the regulator ‘disinterested’ In a robust defence of the FRC’s disciplinary actions, Moriarty refuted … Read More

Grant Thornton relegated from top tier of audit supervision

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Grant Thornton has reportedly been demoted from top tier of audit supervision after the accountancy firm cut its number of high profile clients, the Financial Times has reported. According to regulatory filings, the Financial Reporting Council industry watchdog moved the firm from “tier one” to … Read More

Big Four continue to dominate audit market, FRC finds

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The report highlights the FRC’s intention to conduct market studies that can generate proposals to improve the way the market functions with particular regard to better choice and resilience The Financial Reporting Council (FRC) has today (14 December) published an updated overview … Read More

IAASB introduces new auditing standard for SMEs

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The International Auditing and Assurance Standards Board (IAASB) has released a new global auditing standard, ISA for LCE, specifically designed for smaller and less complex businesses. The new standard, ISA for LCE, is a first of its kind, marking a significant … Read More

The view ahead: four accounting predictions for 2024

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The world is changing fast. Economically, politically, and technologically, accounting teams and companies face a near-constant change flow. It can be hard to know how to future-proof your business, where and when to invest, and where the next challenge may come from. But if you … Read More

FRC announces areas of supervisory focus for 2024/25

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These include risks related to the current economic environment for example: going concern, impairment, recoverability and recognition of tax assets/liabilities The priority sectors are construction and materials, food producers, gas, water and multi-utilities, industrial metals and mining and retail. These … Read More

FRC scales down changes to corporate governance code

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The FRC has confirmed its plan to scale back audit changes by taking forward under half of the original 18 proposals it set out in the consultation with its stakeholders. It intends to publish an updated code in January 2024 … Read More

FRC to strengthen auditor reporting requirements….

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The Financial Reporting Council (FRC) has launched a consultation to strengthen auditor requirements to detect and report material misstatements from non-compliance with laws and regulations and to clarify instances auditors should report such breaches, and other significant matters, to the relevant regulators. This … Read More

UK and NZ audit bodies agree mutual recognition of audit qualifications

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The MOURA will provide a process for auditors who have obtained professional audit qualifications in either the UK or New Zealand to apply for recognition of their qualification and audit rights in the other nation. The UK and New Zealand … Read More

Fears of large fines put off mid-tier audit firms……

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The low number of audits of listed companies undertaken by mid-tier firms has led to concerns over the lack of competition within the audit sector. Mid-tier audit firms feel discouraged from taking on audits of listed companies from fear that they may be hit … Read More

UK insolvency firms to face formal regulation

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Sky said that the announcement from Whitehall is expected nearly two years after the consultation and that the Department for Business and Trade’s Insolvency Service will introduce measures that will allow both businesses and people to be sanctioned for misbehaviour. … Read More

Audit scandals rendering profession ‘unattractive’ to newcomers

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The FRC has overseen a major uptick in audit enforcement activity recently, with the regulator issuing fines of £33.3m in 2022, a 77% increase from the previous year.   The string of high-profile audit failures in recent years have been … Read More

Number of accountancy members increases to over 400,000 but student numbers fall…..

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There has been a 2.1% increase in accountancy members to over 400,000 in the past year, according to the Financial Reporting Council’s (FRC) 21st edition of its Key Facts and Trends (KFAT) report. The increase comes despite the number of … Read More

Big Four firms fight to block US auditors’ role in fraud detection

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The proposed new rules come amid frustration in Washington that audit firms are not living up to their duty to protect investors from wrongdoing by their clients.  Big Four accounting firms are fighting to block new rules in the US that would … Read More

FRC imposed ‘record’ £40.5m in sanctions in FY22

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The FRC has revealed that a record number of cases were resolved in the year 2022/23 that resulted in financial sanctions of £40.5m being imposed, according to the council’s Annual Enforcement Review that was published today (27 July). Quality improvements … Read More

FRC welcomes new corporate reporting requirements

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These new requirements will boost the resilience of the UK economy, ensuring it continues to attract talent and investment. The Financial Reporting Council (FRC) has welcomed the Government’s publication of the draft statutory instrument on corporate reporting, which strengthens reporting requirements. The new … Read More

Global accounting firms set up shop in India’s smaller cities

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The world’s major accounting firms are stepping up investments in new Indian facilities away from bigger cities as global demand for cheaper back office operations grows and smaller towns move up the economic value chain. For decades, large multinational corporations … Read More

Accountancy firms struggle to find staff

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The accountancy profession is struggling to hire experienced auditors and new talent, as salary pressures and excessive workloads are felt across the board. With the demand for auditing services continuing to rise, many firms across the UK are facing a … Read More

ISSB issues inaugural sustainability standards

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The International Sustainability Standards Board (ISSB) has issued its inaugural standards, FRS S1 and IFRS S2. IFRS S1 is based around General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 is based on Climate-related Disclosures. IFRS S1 provides a set of … Read More

FRC launches new minimum standard for audit

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The FRC said that by setting out clear expectations and guidelines, it aims to support the delivery of high-quality audits and reinforce public trust in the financial reporting process The Financial Reporting Council (FRC) has unveiled a new minimum standard for audit, which … Read More

ISSB transition respite will provide ‘more consistency’

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The IFRS’ newly-announced transitional reliefs may reduce the burden on companies preparing for the rollout of enhanced sustainability disclosures in January 2024, according Richard Singleton, finance and sustainability director at Menzies. The ISSB revealed that it will offer transitional aid … Read More

Smaller accounting firms urge the Big 4 to share their expertise……

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Audit Partners, which together earn the vast majority of FTSE 350 audit fees, said they were concerned they could be accused of breaking competition law if they helped. Smaller Accountancy Firms have called on Deloitte, EY, KPMG and PwC to share … Read More

FRC outlines three-year plan as costs to rise £6.5m

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The FRC said it has ‘already taken numerous steps’ towards achieving the goals of the reform program. The Financial Reporting Council (FRC) has published its latest three-year plan, outlining its priorities and objectives for the period 2023-2026. The FRC revealed it anticipates … Read More

Changes abound – adapting to the new audit landscape

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Against a volatile geopolitical and economic backdrop, 2023 is shaping up to be another critical year for the audit industry. Following three years of pandemic-induced restrictions and disruptions to “traditional” working patterns and practices, a renewed push for audit reform … Read More

IAASB launches consultation on audits for less complex entities

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Following stakeholder feedback on the current consultation, the IAASB envisions approving a final standard in December 2023. The International Auditing and Assurance Standards Board (ISAAB) has launched a consultation regarding a new section of proposed auditing standards for smaller and … Read More

Look out, there’s a skills crunch ahead!

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Demographic trends and changing work patterns have set the profession on the road towards an inexorable collision between supply and demand. What can accountants caught up in the skills crisis do to come out unscathed? There’s nothing more frustrating than … Read More

Audit reform causing work to ‘cascade down’ through the market

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UK audit reform is inadvertently creating opportunities for challenger firms to pick up clients from the Big Four, according to James Hadfield, head of Menzies audit service. Changes are being introduced to better allow mid-tier firms to compete for Public Interest Entities … Read More

As pressure mounts from consumers, stakeholders and regulators to disclose sustainability information, so too does the demand for ESG assurance services.

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A new ‘coexistence’ of financial audit and ESG advisory teams could emerge due to the nature of sustainability assurance services PwC has predicted that ESG assets will account for more than 50% of mutual fund assets by 2025 – representing compound annual … Read More

FRC publishes regulations for new PIE Auditor Register

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The Kingman Review in 2018 found that the FRC had insufficient powers to address systemic issues at the firms, relying on the registration powers of the Recognised Supervisory Bodies. The creation of the PIE Auditor Register was also a key … Read More

FRC outlines next steps in transition to new regulator

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The paper follows the Government Response to the consultation on strengthening the UK’s Corporate Governance, Corporate Reporting and Audit systems The Financial Reporting Council (FRC) has published a Position Paper which sets out the next steps to reform the UK’s … Read More

FRC issues consultation on audit quality indicators

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Proposed AQIs would provide comparable indicators on perceived culture within an audit firm, audit quality inspection results, staff workloads, and the level of partners’ involvement in individual audits The Financial Reporting Council (FRC) has issued a consultation on publishing audit quality indicators … Read More

UK unemployment rate hits almost 50-year low – 1.3m Job vacancies

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The UK unemployment rate is close to a 50-year low point, having dropped by 0.2% to 3.8% for February to April 2022, and those unemployed for up to six months increased over this three-month period, marking the largest increase since … Read More

Employers have ‘profound’ concern over skills shortages

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Most employers have recognised a skills shortage in their workforce, or expect to have shortages in the next five years, according to new research from PwC.  The firm found that concerns around skills shortages were “profound”, with 33% experiencing a … Read More

BEIS outlines plan for UK adoption of new sustainability standards

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The UK government is plotting a series of initiatives to enable the domestic endorsement and adoption of new international sustainability standards, according to Debbie Crawshawe, accounting expert at the Department for Business, Energy and Industrial Strategy (BEIS). Speaking during a … Read More

Accountancy industry turnover hits new record in March

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This marks the largest monthly figures on record for the sector, as it was 13% higher than the previous record turnover that was reported in January 2022 The UK accounting industry saw its turnover rise to £4.13bn in March, marking … Read More

A third of accountants are working a four day week

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Some four in five (79%) of accounting firms are seeing an increase in flexible working as a result of Covid-19 – with a third (33%) of accountants already working a four day week, according to new research from FreeAgent. The report, which surveyed … Read More

Audit Committee Chairs ‘particularly alert’ to quality in tendering process

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Audit committee chairs are “particularly alert” to quality during the auditor tendering process, with mandatory tendering being seen as an opportunity to encourage innovation by prospective auditors, according to independent research commissioned by the Financial Reporting Council. The research, conducted by … Read More

UK now seen as most important market for US business leaders

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The UK has overtaken China to become US CEOs’ favoured growth market, with over a third identifying the UK as one of the most important territories for their companies, according to PwC’s 25th Annual Global CEO Survey. The survey of almost … Read More

UK accountants hit by skills , salary war and the “The Great Resignation”

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Nearly half (49%) of UK accountancy firms are facing “huge blows” to their growth amid an ongoing skills and salary war that is “raging” across the sector, according to new research from IRIS Software Group (IRIS) It comes as KPMG found that many firms have … Read More

Tel Aviv named as world’s most expensive city to live in

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Tel Aviv has been named as the most expensive city in the world to live in, as soaring inflation and supply-chain problems push up prices globally. The Israeli city came top for the first time in a survey by the … Read More

Deal volumes surge by almost 70%

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BDO’s latest PCPI index revealed that deal volumes in the first three quarters of 2021 exceeded the total for 2020, “confirming market recovery” writes Jaskeet Briah in Accountancy Today Deal volumes surpassed pre-pandemic levels with a 69% rise in the … Read More

CK Search Global launches specialist Cross Border Desk

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As the world opens up again, CK Search Global are here to advise and help facilitate a cross border hire or move for our select clients and candidates. Our Cross Border Desk works with audit, advisory and consulting firms around … Read More

Regulator requires climate-related reporting from 2022

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The FRC has outlined its ‘top 10’ areas where improvements to reporting are required, including reporting on climate-related financial disclosures according to its latest report. The FRC expects ‘material’ climate change policies, risks and uncertainties to be included in narrative reporting … Read More

Hybrid working could boost social mobility

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A survey by BDO showed that mixing remote and office work appeals more to young people from low socio-economic backgrounds writes Patrick Dunne in Accountancy Today. The option of hybrid working – mixing remote and office-based work –  appeals more … Read More

Global commitment for net zero

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The  Accountancy bodies have together committed to reach net zero emissions ‘as soon as possible’ and are set to publish plans to do so within the next 12 months, writes Heather smith in Accountancy Today Thirteen professional accountancy bodies from … Read More

Mid-tier Auditors and Audit Reform Proposals

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In an article in Accountancy Today , written by Harry Deacon, Chris Biggs, partner at Theta Global Advisors, discusses the FRC’s audit reform proposals, and why mid-tier auditors are intrinsically linked to any changes despite the Big Four gaining all … Read More

Should I be working from home or going back to the office?

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What’s the advice in England and how might it change is covered in article by the BBC. Since Covid restrictions lifted on 19 July, people are no longer asked to work from home. PM Boris Johnson recommended a “gradual return” for staff … Read More

Job vacancies surge past one million in new record!

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Job vacancies have hit a record high as the economic recovery continues, according to official figures and a recent article by the BBC. The number of vacancies in the three months to August rose above one million for the first … Read More

Plans for a new professional body for corporate auditors questioned by the IACEW and ACCA

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Sam Alberti  in an article in Accountancy Age writes that Government proposals to establish a new professional body for corporate auditors have been dismissed as “a costly distraction” and “career limiting” by the Institute for Chartered Accountants in England and … Read More