Blog Accountancy Sector Scandals: Who Can You Trust?

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Accountancy Sector Scandals: Who Can You Trust?

A number of accountancy scandals have hit the papers recently.

One example involves a Big Four auditor – KPMG – who failed to verify whether an invoice charging multi-millions of pounds had consensus from both parties. This may naturally lead you to feel concerned about the industry and who you can trust within it.

Here, we examine what the news has been saying, showing you how to pick an accountancy provider in good faith.

The situation

Not all the stories in the papers are related to firms within the accountancy industry. Tesco overstated its 2014 first-half profits by £208m, leading to a long investigation that’s still going on today. Whilst PwC were questioned, the investigation on them was ultimately closed.

The worry around the accounting sector is prominent, with the watchdog arguing that some companies are not meeting the necessary standards.

But for the Financial Reporting Council (FRC), improving the quality of audits is a key target. Having previously been accused of being too soft, the FRC has vowed to intensify its scrutiny and enforce steeper financial penalties.

Can you trust accountancy firms?

With FRC being tougher, the accountancy and auditing sector should most certainly improve. This means that the industry can be trusted. There are many firms within the sector who have never been involved in any accountancy scandals, remaining fully compliant from day one. 

To ensure the accountant you select is trustworthy, explore whether they meet certain requirements. Testimonials from satisfied clients is a key indicator of trustworthiness, for example.

Also, Making Tax Digital soon comes into force, so you need to make sure your accountant is prepared. This way, your business can meet its obligations.

Put your faith in Bright Ideas Accountancy

At Bright Ideas Accountancy, we pride ourselves on our terrific, trusted reputation. 

Our cloud accounting software offers you full visibility of your accounts at any time and from any device. And, thanks to our experts, you’ll always be able to see what’s ahead.

We’ve got a range of packages on offer to suit the needs of your business. Our services include year-end accounts, bookkeeping, payroll, Self Assessment and VAT returns.

To discover how we assist with your business’ finances, arrange a consultation by calling our team on 0161 669 4221, emailing info@biaccountancy.com, or filling in our online contact form.