The audit market for listed companies dominated by the Big Four accountancy firms – Deloitte, KPMG, PwC and EY – is not working as hoped. Auditors from across the major firms have been grilled by politicians and reform is inevitable. Many in the profession, like our own chairman Clive Stevens, have also been asked for their thoughts on the way forward at a recent Parliamentary committee.
At the time of writing there is little more than a month to go to the planned EU Exit date of 29 March, yet there remains considerable uncertainty as to whether the UK will be leaving the EU with a negotiated deal or not, or even if the UK will be leaving the EU at all on that date as planned.
Last week the UK saw a new record high temperature for February, with 21.2°C recorded at Kew Gardens in London. Whilst this unseasonal weather was quite welcome, it seems to be an opportune time to write about new energy and carbon reporting requirements that come into force later this year.
All charities that are required to prepare accounts are obliged to do so in accordance with UK accounting standards, and in particular the Statement of Recommended Practice on Accounting and Reporting by Charities, commonly known as the SORP.
Each year charities in England & Wales have to file an annual return with the Charity Commission, part of the regulatory burden that all charities face but one that is considered a vital part of the Commission’s oversight of the sector that helps them to identify and address areas of concern. This inevitably means that as new issues present themselves, and there have been a number of these that have arisen over the last few months which have attracted widespread media attention, the annual return is amended and updated to cover areas that the Commission feels it has become necessary to obtain greater information on.
There are many benefits that come from running your business through a corporate body, whether it be a company or a limited liability partnership. These benefits come at a cost though, one of which is the requirement to publish information about the business at Companies House.
Our financial reporting webinar will provide you with an update on recent and upcoming financial reporting developments. This is particularly important for company finance teams and others requiring an in-depth update on financial reporting developments.
Yesterday (20/09/2017) the FRC published a proposed amendment to FRS102 that solely relates to charities, which aims to achieve a consistent approach to the accounting for trading subsidiaries. There has been some confusion in this area in recent years following the ruling that the donation of a trading subsidiary’s profit to its parent charity is in fact a company distribution.
The Charity Commission issued a press release yesterday stating that in the year ended 31 December 2016, 97 charities, which have a collective total income of approximately £195 million, filed accounts that included a formally modified audit opinion. But what does this mean? Is this really an issue? It’s not unheard of for auditors to have disagreements with their clients over accounting treatments which, if unresolved, will likely result in a modification of the audit report.
The advancement of technology and Big Data has made it easier than before for auditors to capture, transform, share and analyse entire datasets which allows 100% (as opposed to a sample) to be integrated within a population. By presenting this information geographically, it enables patterns, trends, correlations and unusual transactions that may go unnoticed in text presentation to be identified more easily.