Businesses Face More Questions From Auditors In 2008

Fri, 04 Jan 2008

Auditors in the UK will be applying more scrutiny to Business health checks will be scrutinised more by auditors this year, according to the Financial Times .

The newspaper reports that businesses will be forced to provide greater evidence to prove they can finance business activity in 2008 due to the on-going impact of the credit crunch.

Speaking to the newspaper, Andrew Ratcliffe, audit member at accountancy firm PricewaterhouseCoopers, said liquidity challenges will be felt across all parts of the economy, resulting in auditors of all business sectors having more questions to ask than usual.

Martyn Jones, UK national audit technical partner at Deloitte, said: "Many of the normal assumptions can't be taken for granted so while we always tested them, this year needs particularly high levels of challenges - we are in a new world."

The changes will mean that as part of an audit, any serious doubts over a firm's health will be detailed for investors .

UK accountants and auditors have previously been warned by the Financial Reporting Council to prepare financial reports using "increased diligence" following the credit crisis in the monetary markets .
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