BusinessPostCorner.com
No Result
View All Result
Wednesday, July 16, 2025
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
BusinessPostCorner.com
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
No Result
View All Result
BusinessPostCorner.com
No Result
View All Result

75% of UK audits failed to raise alarm before collapses

May 21, 2024
in Accounting
Reading Time: 2 mins read
A A
0
75% of UK audits failed to raise alarm before collapses
ShareShareShareShareShare

U.K. auditors are failing to perform their core function, according to a report published Sunday.

The Audit Reform Lab, a think tank at the University of Sheffield, analyzed 250 of the largest publicly traded companies in the U.K. that collapsed between 2010 and 2022. It found that 75% of audit reports failed to raise an alarm that the collapsed company could go bankrupt by providing a “material uncertainty related to going concern” paragraph or warning in the year prior to the collapse.

Of the Big Four firms, Ernst & Young performed the worst, warning 20% of collapsed companies of going concern risks, followed by PricewaterhouseCoopers (23%), Deloitte (36%) and KPMG (38%). Audit firms beyond the Big Four provided warnings in 17% of cases.

“Auditors are currently incentivized to maintain good client relationships, rather than apply the principles of professional skepticism and enforce prudence. The U.K.’s ineffective regulatory, oversight and sanctions system, and the limited liability for audit partners (under the Limited Liability Partnership business structure used by Big Four firms) provides little disincentive for this model to change,” said the report. “Until the culture of audit is reformed and a new and more effective regulator is in place, partners at audit firms will continue to reap huge financial rewards, despite continued audit failures that harm business confidence and our economy more widely.”

The report comes after numerous high-profile collapses and record fines imposed by Britain’s accounting regulator, the Financial Reporting Council, including KPMG’s audits of construction company Carillion, PwC’s audits of retailer BHS, and EY’s audits of travel firm Thomas Cook. Meanwhile, average partner pay at the Big Four firms in the U.K. rose from 2020 to 2022 by 31%, reaching £872,500 ($1.1 million), according to the report.

KPMG and EY declined to comment. PwC and Deloitte did not immediately respond to requests for comment.

Credit: Source link

ShareTweetSendPinShare
Previous Post

Donald Trump declines to testify as ‘hush money’ trial enters end stage

Next Post

Kevin Costner and Francis Ford Coppola bet tens of millions on vanity projects

Next Post
Kevin Costner and Francis Ford Coppola bet tens of millions on vanity projects

Kevin Costner and Francis Ford Coppola bet tens of millions on vanity projects

Key Crypto Trade Groups Call For CLARITY Act’s Passage

Key Crypto Trade Groups Call For CLARITY Act’s Passage

July 12, 2025
Deloitte Tax acquires Trust Processing Solutions assets

Deloitte Tax acquires Trust Processing Solutions assets

July 14, 2025
Trump says he will impose 30% tariffs on the EU and Mexico from August 1

Trump says he will impose 30% tariffs on the EU and Mexico from August 1

July 12, 2025
Africa’s top garment exporter could fold under US tariffs, minister says

Africa’s top garment exporter could fold under US tariffs, minister says

July 12, 2025
Wolters Kluwer announces cloud-native version of CCH Validate

Wolters Kluwer announces cloud-native version of CCH Validate

July 14, 2025
5 best CRMs for utilities in 2025

5 best CRMs for utilities in 2025

July 11, 2025
BusinessPostCorner.com

BusinessPostCorner.com is an online news portal that aims to share the latest news about following topics: Accounting, Tax, Business, Finance, Crypto, Management, Human resources and Marketing. Feel free to get in touch with us!

Recent News

JPMorgan Chase is rolling out a new fee structure that could ‘cripple’ crypto and fintech startups, executives warn

JPMorgan Chase is rolling out a new fee structure that could ‘cripple’ crypto and fintech startups, executives warn

July 16, 2025
Elliptic Report Finds Cross-Chain Crime Up 200 – Here’s Where Hackers Hide Now

Elliptic Report Finds Cross-Chain Crime Up 200 – Here’s Where Hackers Hide Now

July 16, 2025

Our Newsletter!

Loading
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2023 businesspostcorner.com - All Rights Reserved!

No Result
View All Result
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources

© 2023 businesspostcorner.com - All Rights Reserved!