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PREM SIKKA There's no end to the audit market chaos There is no end to auditing woes. KPMG is to pay £1.3bn to settle claims of negligently auditing the accounts of Carillion, the UK’s second-largest construction firm, which collapsed in 2018. The Financial Reporting Council (FRC) is probing PwC’s audits of the financial statements of Intu Properties plc. The FRC has consistently reported that big firms deliver poor audits. The most recent report stated that around a quarter of the audits by major firms were poor. The regulator could shut down the persistently failing firms, but hasn’t. The promised post-Carillion auditing legislation has failed to materialise. Lack of professional scepticism and independence are the most common factors in audit failures. The lure of lucrative consultancy fees could be ended by requiring auditors to act exclusively as auditors. That would prohibit audit firms from selling any consultancy services. Periodically, after a scandal big firms resurrect the possibility of the audit/non-audit split – two arms under a common ownership. It is very different from requiring audit firms to concentrate on audit only. Through such tactics, headlines are managed and crisis is mediated. Meanwhile, audits deliver little of value but audit firms continue to enjoy the state guaranteed market of external audits. Yes, there is no business like auditing business. Prem Sikka is Em eritus Professor of Accountin g at the University of Essex
Azets targets 500-plus new recruits for 2023 Azets has announced plans to recruit more than 500 apprentices, graduates and school leavers in 2023. The UK Top 10 accountancy firm currently has 650 apprentices, graduates and school leavers across England, with 331 having joined in August 2022. Azets is offering another 531 early careers opportunities for September 2023, to take the total to nearly 1,200 by the end of this year. In 2017, Azets had just 30 apprentices, reflecting the firm’s rapid growth and ongoing investment in talent development over the past six years.
This latest graduate recruitment drive is part of Azets’ recently announced plan to add 900 roles across its UK business over the next 12 months. The positions cover all levels, from associate through to partner,
and service lines including audit and assurance, accounting and advisory business services, corporate finance, tax and restructuring. David Whitson-Black, Group Head of Talent Development, said: “Our commitment to early careers and creating accessible apprenticeship opportunities is stronger than ever. We have continued to increase apprenticeship opportunities yearon-year, as we continue to invest in people and talent development. “We are also seeing a huge spike in demand, with a record number of applications for September 2023. This is not only being driven by young people but a diverse range of ages and people looking for a career change.” All current early careers opportunities can be found at https://tinyurl.com/yckthfx8
CIMA blackout notice CIMA is upgrading its systems in April, which could affect students’ exam schedules. No exams can be taken between 12 and 26 April. MyCIMA accounts will be ‘unavailable’ for access, including exam scheduling, between 17-26 April. If you plan to take a Case
Study Exam in May, you must pass all the Objective Tests before you schedule the case study. You may need to adjust your scheduled exams to accommodate the available dates. So, basically, if you want to sit an exam after 26 April you can
pre-book it between 12-16 April. But from 17-26 April you can’t book an exam or sit one.
Become a financial modeler ACCA has partnered with the Financial Modeling Institute to offer members its Advanced Financial Modeler Accreditation. ACCA members will have the opportunity to obtain FMI’s Level 1 Advanced Financial Modeler (AFM) exam, enabling them to differentiate themselves by demonstrating that
they have the advanced financial modelling skills most valued by employers worldwide. FMI is recognised globally for providing the most respected accreditations in financial modelling. ACCA Chief Executive Helen Brand said: “This exciting accreditation marks the global
gold-standard for financial modelling, so we’re delighted to be working with FMI on this. Through this partnership and by offering this qualification we’re supporting our members’ career success, as well as opening the door to connections with fellow professionals.” ACCA members interested in obtaining FMI’s AFM accreditation can find more information and enrol at the ACCA Learning website.
by more than half to £6,000, its lowest level since 1995/96. In April 2024 it falls even further to £3,000, meaning more people making capital disposals will be brought into the net of paying CGT.
and help increase the amount they receive in state pension. This comes after members of the public voiced their concern over the previous deadline of 5 April 2023. Anyone with gaps in their National Insurance record from April 2006 onwards now has more time to decide whether to fill the gaps to boost their new state pension. Any payments made will be at the lower 2022 to 2023 tax year rates. Taxpayers can check their
National Insurance record via the HMRC app or their Personal Tax Account.
Taxwatch More publicity needed The Chartered Institute of Taxation (CIOT) has warned that imminent reduction of the annual exemption for capital gains tax will see hundreds of thousands of people become liable to pay tax they may not even be aware of, and urged the Government to publicise the change. From 6 April 2023, the current allowance of £12,300, which is the amount above which people begin to pay tax when they sell an asset for a profit, will be cut 8
Taxpayers given more time for voluntary NICs The UK government has extended the voluntary National Insurance deadline to 31 July 2023 to give taxpayers more time to fill gaps in their National Insurance record
HMRC stops tax agency offering services A company that charged taxpayers significant sums to make claims for tax refunds has been stopped from operating. Tax Credits Ltd (TCL) can no longer trade as a repayment agent after HMRC found it had committed serious anti-money laundering breaches. PQ Magazine April 2023