PQ magazine, September 2025

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IN THIS ISSUE

A note from the Editor

So, finally CIPFA and ICAEW are going to try another merger, some 20 years after the last attempt. PQ magazine was around for that one too, and wrote extensively about it, so you can imagine our shock when we asked ChatGPT about what happened back then and it got it totally wrong! In fact it was worse than that – it seemed to happily rewrite history. We put it right, and now you can read about what really occurred in 2005.

Just to say, if you have been using ChatGPT you should note that at the bottom of every page it says that “ChatGPT can make mistakes”. Too true!

However, we know it is time to unlock the power of AI. Our next live roundtable in early October is on that very subject. We have the wonderful Stuart Pedley-Smith signed up as one of our speakers. Get on to Eventbrite to sign up (see page 5 for all the details).

We also have tips for the ACCA September exams, and exam results from CIMA, CIPFA and ICAEW. We are hoping to publish the AAT ones next month. There is nowhere else you can see all these in one place.

Hope you like our front cover and our homage to the Maurizio Cattelan ‘Comedian’ artwork. We haven’t put our art up for sale but if you want to bid for it then drop me a line!

Graham Hambly, Editor and Publisher, PQ magazine

8 ICAEW workplace report

18 Financial crime

How you could inadvertently be helping crime gangs ‘clean’ profits from their child trafficking operations

20 PESTLE analysis

Top tutor Karen Groves explains how this strategic tool is used to assess a company’s macroenvironmental threats

22 ACCA student app

No ACCA student can afford to be without this app – it really will help you tackle those exams more effectively

23 Managing Risk

Teresa Clarke looks at the TARA framework and VAT tax points

24 Artificial intelligence #2 AI will certainly impact the future of accounting – but will the machines take over?

26 Study advice

Lost your study groove? We can help you get it back!

32 ACCA exam tips

Top tips for the forthcoming Optional papers. But fear not –there’s loads more tips on our website, folks!

34 AAT exams

What you need to know about the AAT level 4 internal controls exam

36 Accountex Manchester It’s showtime! Registration is now open for the seventh Accountex Summit Manchester

37 IFA spotlight

Common compliance mistakes student accountants make –and how to avoid them

39 Careers

The gender pay gap is shrinking – but there’s still a way to go; more advice from our careers Agony Aunt; and our Book Club will help you become a high-flier

40 Fun

4 CIPFA/ICAEW merger update

Two institutes sign a Head of Terms agreement as they move closer to a merger

5 New ACCA qualification

What ACCA students really wanted from the revamped qualification…

6 AAT’s university tie-up

AAT teams up with University of Exeter to launch Accounting Finance Manager Degree Apprenticeship

Institute’s report on mid-tier firms highlights a generational divide

9 CIPFA June pass rates

What were the good papers for students sitting their exams in June? And what were the rotters?

10 CIMA SCS results

May’s 53% success rate represents the worst set of results since February 2024

12 Tech news

RSM UK announces strategic partnership with AI consultant IntellixCore

28 A question for Tom Tom Clendon tackles a question on an international standard that frequently causes problems for students

29 CIPFA spotlight

From lectures to leadership: we take you inside CIPFA’s Management Games

30 CIMA spotlight

Isn’t it about time you signed up to join the Class of ’25? It’ll really do you good – and it’s free

31 CTA exams

The art of passing an Advanced Technical or Application and Professional Skills exam

The lighter side of life – and accountancy

The columnists

Lisa Nelson The lessons to be learned from the Lionesses’ success4

Sunil Bhandari The future looks bleak for accountancy tutors 6

Prem Sikka Why do governments give corporate giants free rein 8

Anna Kate Phelan ‘Invisible’ technology makes for a fairer exam10

Hannah MacDonald Inclusivity must be for life, not just for starters 12

Features, etc

14 Have your say Young accountants fooling themselves if they think they’ll become entrepreneurs ; ACCA studiers must show ambition; and why the Big 4 prefer tech over people. Plus our social media round-up

17 Artificial intelligence #1

How AI got it wrong when we asked it about ICAEW/CIPFA merger talks. So be warned…

LISA NELSON

Lessons from the Lionesses

The final whistle has blown, the confetti has settled, and once again the Lionesses have made history, triumphing in the Women’s Euros in Switzerland. This wasn't just another football victory; it was a masterclass in resilience and the power of collective ambition. For PQs navigating the demanding route towards a professional qualification there is much inspiration to be drawn from the pitch.

Consider the Lionesses’ journey: months of relentless training, adapting to new challenges and responding to setbacks. For PQs that’s a familiar story. Each subject and topic mastered, each assessment or exam attempted (whatever the outcome), every complex scenario decoded, and every demanding project or client engagement builds your expertise. It's about consistent, focused effort and incremental progress.

Team cohesion was a critical component of the Lionesses’ success. In the professional sphere, your professional network (colleagues, mentors, study partners) forms your own essential support system. Leaning on this collective strength and contributing to it is vital for sustained development.

The Lionesses have proven that success comes when preparation meets opportunity. Your ‘final whistle’, full qualification, is the culmination of this hard work. Every study session, every assessment and every moment of perseverance is propelling you forward. Embrace the journey, learn from every experience and, most importantly, keep showing up, even when it gets tough. Your dedication is paving the way for your own professional achievement.

• Lisa Nelson is Director of Education at Kaplan

Class of ’25

CIMA’s Class of ’25 (season 2) is now open for business. If you are planning to sit the case study exam in November 2025 or February 2026 this free-of-charge programme is ideal for you.

You must register with the programme before 5 September for OCS, 12 September for MCS and 19 September for SCS.

The seven-week programme – a PQ magazine award winner – provides an online study guide, recorded webcasts and articles,

CIPFA and ICAEW to finally merge?

CIPFA and ICAEW have signed a new Head of Terms agreement, which sets out the strategic direction for a potential merger between the two chartered bodies.

Under the agreement CIPFA would formally join the ICAEW group but retain its distinct brand, legal identity, charitable status and operational independence.

This new move initiates a process to explore and develop a formal proposal, which if implemented would be subject to the respective governance and approval processes of each organisation, a vote of both members and any necessary regulatory approval.

CIPFA CEO Owen Mapley said: “We have made real strides in working more closely over the last two years, driven by shared values and a common purpose. We believe

this closer alignment will strengthen our collective voice, improve member services and enhance our resilience and relevance in the UK and internationally.”

ICAEW CEO Alan Vallance added: “This marks the next step in a long-standing and ever-deepening relationship between ICAEW and CIPFA. Since joining ICAEW I’ve

been focused on strengthening that relationship and I’m pleased we’ve now reached this agreement. I am certain that it will bring with it greater opportunities to respond to the evolving needs of our members, the profession, business and society, and to strengthen the impact and trust of the accountancy profession in the UK and around the world.”

More excuses for audit reform delays!

Real concern has greeted the news that the UK government is again delaying the much-promised audit reform bill in the current parliamentary session.

A letter from Justin Madders, the minister for employment rights, competition and markets (pictured), claims the current volume of legislation before

parliament means the draft Audit Reform and Corporate Governance Bill will not be put forward. More worryingly, Madders is going to use the delay for more ‘consultation’. He believes the oversight of the market has improved dramatically since Carillion, and he wants to ensure the reforms “strike the right balance between oversight

Schedule your exams for noon

If you feel you struggle with exams early in the morning or late in the afternoon you are not alone.

New research from the University of Messina has found that the time you take your exam can have a big outcome on the results. The same might also be true of job interviews, too.

dedicated 1-2-1 support and access to a community forum.

And remember, if you attempt the exam in November 2025 you may be eligible for a free resit in February 2026 (T&Cs apply).

For more click here

• Read more on page 33.

Your GenAI accelerator

ICAEW is launching a new GenAI accelerator programme, with the first course being rolled out from August 2025. The programme

Professor Carmeo Mario Vicario’s study of over 100,000 exam results from Italian university students revealed a clear bellshaped curve in success rates, with exams sat at noon having the highest

and assurance for investors, whilst not placing unnecessary additional burdens on business”.

In response the Business and Trade Committee Chair, Liam Byrne, wants to know which reforms the minster now considers “burdensome”, and wonders where it is getting its advice. ICAS welcomed the questions posed by Byrne.

That wait for audit reform is going to be a bit longer!

pass rates. The pass rates were also good if the test was taken at 11am or 1pm.

aims to equip accountants with the practical GenAI skills they need, and is tailored specifically for finance and accounting professionals.

The eight specialist courses are broken down into short modules, blending foundation knowledge with practical applications. Each course focuses on a unique area of GenAI application.

The ICAEW’s programme has been produced in collaboration with Peter Beard of GenFinance.ai

For more click here

The researchers were apparently inspired by work that showed judges were most likely to rule in favour of a defendant after a meal break or at the beginning of a session.

Register for Accountex

Last year more than 3,000 accountants descended on Manchester for the Accountex exhibition, and registration is now open for the seventh summit. For the first time PQ magazine has become a partner of the event, and will be attending along with 120-plus software providers. The summit takes place at Manchester Central on 23 September.

For further information see www.accountexmanchester.com.

Shake on it: Alan Vallance and Owen Mapley

What ACCA students want

With 30 minutes to go before the official ACCA unveiling of its new ‘redefined’ qualification, students had very definite ideas of what they wanted to see happen. They didn’t want fees to rise, for one.

Many asked for the results to arrive into their inboxes quicker.

“Please release results within two weeks,” said one PQ. The same trainee wanted all past papers to be published again!

Other key demands were: Increase the length of the

strategic exams to four hours. Reduce the number of exemptions available to university students.

Exam dates to change, so they

don’t clash with month end. Make all papers on-demand, or have increased sittings.

Some tutors and students were surprised that the launch didn’t reveal more. As James Wright said: “Is it just me or did anyone else come away with more questions than answers?” One student said: “Lol 10K people waited for nothing… what was the purpose of the live stream?”

There are lots of great resources on ACCA’s website

And you can also watch the launch video here

ACA June Professional exam results

A total of 7,950 students sat ICAEW’s June Professional exams, and the pass rates were:

and

Some 1,335 PQs took three exams at this summer’s sitting,

with 77.5% passing all three. Another 14% passed two out of three, and 4.5% passed just one.

This compares with a pass rate of 72% for students sitting just one paper, which meant 805 (or 28.25%) of those sitting one paper came away from this sitting with nothing.

It all adds up to a total of 1,943 students who passed the Professional Level this session, with 983 of these not failing any papers.

Accountants…time to unlock the power of AI!

PQ magazine and Rogo have joined forces again to host an online roundtable on how AI is going to affect every facete of your life!

We are gathering together experts from the accountancy industry around the table to have a frank discussion on the reality of AI.

Understanding AI will become a huge ‘differentiator' for your education, learning, and future career, you can’t escape it! Whether it’s revising for exams or writing your CV, AI will be there…

Join us on Wednesday 8 October, with the live roundtable beginning at 4pm (GMT) and will run for about 45 minutes.

Places will be allocated on a first-come, first-serve basis.

To sign up, register your interest at: https://shorturl.at/WAH64

Accountant pays price for doubling up

Accountant Priyank Patel has been severely reprimanded by the ACCA’s disciplinary committee after he was caught working two full-time jobs at the same time.

After working for one company for just over seven years Patel secured a new role with another company. However, he failed to tell this old company he had another full-time role.

In fact, he told his new firm that he had ended his employment with his old firm, but would be working for them on an ad hoc basis outside his contracted hours.

Both firms finally rumbled what was going on after three months. During the disciplinary hearing Patel accepted his conduct amounted to misconduct, and on top of the severe reprimand Patel was ordered to pay £13,500 in costs.

Patel is not alone when it comes to working more than one job at the same time. Check out our story of notorious accountant Stephen Day on page 40

SUNIL BHANDARI

Why the future looks bleak for tutors

No thank you. Not anymore. This was the answer to a question I was asked recently about whether I would become a tutor in the current environment. Don’t get me wrong, I love what I do and have done since 1986. It’s been a ball for sure.

Back in the good old days being a tutor had a lot going for it. Teaching on weekdays only. Lots of time to prepare. Students had the desire to pass (they all worked for the Big 4). Oh, and also it was rewarding. I went from £8k to £15k + benefits (including a monthly suit allowance!).

The iteration into anti-social teaching hours (evenings and weekends) for CIMA and ACCA students was also rewarding for both tutors and students alike. But also, the start of the slippery slope as tutors started to leave. The move to online teaching required tutors to adapt – and many decided not to.

But the future of the tutor is bleak, I am sorry to say, for three reasons.

Firstly, the pending change in the ACCA syllabus will see Option Paper tutors drop out. Only the best will survive.

Secondly, there will be fewer accountants to train as AI develops.

Thirdly, AI will replace the tutor in the future.

I am glad I am a tutor aged 63 and not 36. I see the light at the end of my tunnel.

AAT and Exeter uni launch apprenticeship degree

AAT has teamed up with the University of Exeter to launch the Accounting Finance Manager Degree Apprenticeship, starting in September 2025.

This innovative Level 6 programme will blend academic with practical, employer-focused training, and is part of AAT’s mission to open access to careers

in finance for everyone.

The programme is the first to offer the AAT Level 4 Diploma in Professional Accounting in addition to a bachelor’s degree.

The AAT Level 4 Diploma will be completed within the first academic year, ensuring apprentices have a headstart in their career and providing exemptions for ACCA Applied Skills and Knowledge exams and CIMA exams ahead of further study to become a chartered accountant.

Rachael Johnstone, Director of the Centre for Degree Partnerships at the University of Exeter, said: “The Accounting Finance Manager Degree Apprenticeship opens new doors for aspiring accounting and finance professionals.”

Do you know your SBR-INT exam?

That is it – the ACCA SBR-UK has now been formally withdrawn following the June sitting.

Students who sat and failed SBRUK this June will now be notified about the resources and essential guidance to help support their transition to SBR-INT. But they will be pleased to hear that the SBRINT exam uses approximately 90% of the same syllabus content.

Students should note that the SBR-INT syllabus and study guide has been updated for the new September 2025 to June 2026 syllabus year.

The largest update has been the introduction of six new learning outcomes, which examine the principles relating to the structure and content of financial statements and disclosures (as detailed in IFRS

18 Presentation and Disclosure in Financial Statements).

And a new learning outcome has been added to discuss the key differences between the IFRS Sustainability Disclosure Standards and the European Sustainability Reporting Standards (ESRS). There is also a new learning outcome which tests the application of IFRS 19 principles.

Outstanding Scottish students rewarded

Twelve of Scotland’s most promising accountancy students have been named recipients of the 2025 Charles Scott Prize by the Institute of Chartered Accountants of Scotland (ICAS).

The prizes are awarded in recognition of outstanding academic achievement in accountancy at Scottish universities.

The prestigious award is presented annually to one student from each Scottish university offering accountancy programmes.

The selection criteria vary by institution and are applied locally by academic departments, with each university identifying the student who has demonstrated exceptional academic performance and promise within their cohort.

Gail Boag, ICAS executive director of learning, said: “Winning the Charles Scott Prize sets recipients apart and gives them a powerful head start in their professional journey. Alongside recognition from one of the world’s most respected professional bodies.”

ICAEW Student Council elects new officials

ICAEW students have new leaders in the form of Kim Kreutle as chair and Millen Olak as vice chair. Kreutle’s day job is in Newcastle with Armstrong Watson, where she works as a corporate tax senior. After university she went into events manager for several years before switching to accountancy. She has now finished all her ACA exams and has one CTA to go. Vice Chair Olak joined

the profession through the apprenticeship route and is currently a senior tax advisor for EY in Leeds. He has represented Leeds Chartered Accountancy Student Society (LCASS) on the ICAEW Student Council for the past three years.

Become a mentor

The AICPA & CIMA Mentoring Programme is looking for its next cohort. This is a unique opportunity for knowledge exchange, allowing members to

prioritise their career development, and invest in fellow professionals.

Applications opened on 21 July, with CIMA hosting a live webinar to explain what is involved in the programme and how you can get involved.

Whether you are a member in need of a mentor or a member who would like to give back to those earlier in their careers, the Mentoring Programme is a chance to cultivate a collaborative relationship, providing a platform for continuous learning and

To find out more visit https://bit. ly/432rqvY

FRC wants to amend FRS 102

The Financial Reporting Council (FRC) has issued a consultation for draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, which include proposed revision to align with IFRS 18 Presentation and Disclosure in Financial Statements.

• Sunil Bhandari is an AFM tutor at FME Learn Online

Meet the winners Jason Howie, Ethan McDonald, Zoe O’Meara, Ella MacLean, Millie Cooley, Hannah Finlayson, Aaron Sweeney, Craig Differ, Szymon Iskierka.

LORD SIKKA

Why are corporates given free rein?

Neoliberal democracy increasingly resembles a sham. People can vote for whoever they want but corporations and the rich win every time.

The evidence is not hard to find. Since the pandemic, electricity and gas supply companies have increased their profit margins by 363%.

Since 2020, the 20 biggest energy companies have made operating profits of £514bn. Governments do nothing to curb profiteering, even when it causes poverty.

Since 1989, water companies have levied inflation-busting charges on customers, but haven’t built a single new reservoir. Instead, they paid £85bn in dividends. They dump raw sewage in rivers. Despite over 1,135 criminal convictions they retain control of the water industry.

Cancer and obesity caused by food high in chemical additives are diseases manufactured in corporate boardrooms. But companies don’t bear the social cost of irresponsibility.

The UK has had a banking crisis in every decade since the 1970s, culminating in the crash of 200708. The state provided £1,162bn in cash and guarantees to bailout ailing banks. Another £895bn of quantitative easing was handed to capital markets. Numerous financial products including car loans, pensions, endowment mortgages and payment protection insurance have been mis-sold, leaving millions in misery. The government response is to roll back the post-2008 reforms.

The loss of trust in institutions of government is the inevitable cost of indulgence of corporations and wealthy elites. What might be the consequences?

Prem Sikka is Emeritus Professor of Accounting at the University of Essex

Tax briefs

MTD for Corporation Tax scrapped

HMRC’s new Transformation Roadmap has confirmed it will not be introducing Making Tax Digital for Corporation Tax. Companies will now not be required to use software to keep digital records and file quarterly updates of their income and expenditure.

Instead, the revenue said it will look to develop a more suitable method of tax collection that reflects the diverse corporate population.

Bridging the generation divide

The generational divide on work ethos is a top challenge for many mid-tier accountancy firms, according to new research from the ICAEW.

Some 58% of firms identified contrasting attitudes to work between staff as one of the top three talent challenges.

ICAEW’s ‘Evolution of mid-tier accountancy firms’ report said that while generational diversity can enhance creativity and understanding within teams, it also introduces varying expectations regarding communication styles and work-life balance. And these can be difficult to reconcile.

The study also found mid-tier firms find recruiting trainees ‘less of a challenge’. Just 3% of firms ranked this among their top three concerns (compared with 10% in

2024).

Interestingly, some 47% of these firms expect to increase their annual trainee intake over the next three years, with another 36% keeping intake numbers steady. Firms do seem to have moved their focus to school leavers rather than graduates, although the changes to apprenticeship funding

Don’t forget seven-year rule

ACCA is reminding students that they have a seven-year time limit for completing their Strategic Professional exams.

The time limit comes into effect when a student passes their first Strategic Professional exam. ACCA said: “If you don’t pass all the Strategic Professional exams and reach affiliate status within seven

years, you’ll lose any Strategic Professional passes achieved after seven years. These will need to be re-taken in order to complete the qualification.”

Exam passes for Foundations in Accountancy, and the Applied Knowledge and Skills level from the ACCA qualification will never expire.

Don’t be scammed on the job!

Graduates and school leavers, who are seeing a slump in entrylevel roles, are now being targeted by scammers with fake job adverts on social media.

The fraudsters are using TikTok and Instagram to deceive job hunters by impersonating popular job boards so they can steal data and money.

Jon Stride, Chair of the ATT’s Technical Steering Group, said:

“We welcome the announcement that plans to introduce MTD for CT will no longer be going ahead. The complexity of corporation tax would make bringing it into MTD difficult, and the benefits were unlikely to be as extensive as anticipated.”

Ex-EY tax chief’s sham transfers

The bankrupt former head of taxation and managing partner at EY, John Dixon, carried out a string

JobsAware, a non-profit organisation supplying free advice, revealed recently it had received 120 reports so far this year of scammers trying to deceive graduates. For the same period in 2024 that number was 13. And AI is being used to help make the deception look more convincing.

of sham transitions to mislead creditors (including HMRC) into believing he had no assets or income.

However, his bankruptcy trustees took Dixon and his wife Janet to the High Court where they recently successfully set aside the transactions and orders, forcing Janet Dixon to hand over half the sale price of two properties.

Judge Sally Barber in her ruling held that Dixon’s conduct was dishonest, his evidence unreliable and interspousal arrangements

might change that.

ICAEW’s Will Holt (pictured) said the announcement on funding restrictions for those starting Level 7 apprenticeships aged 22 and over was disappointing. The unintended consequences of this decision will undoubtedly impact many firms and the skills pipeline, he ventured. Click here to access the report

Just to confuse matters, if your first eligible exam session was December 2015 or earlier you were also given a 10-year time limit to complete the qualification, from the date you registered as a student. If this applies to you, you won’t lose any results before this time limit is up. After your 10-year time limit is reached you will lose any Strategic Professionals results that are seven years old, or older, and you will need to take these exams again.

JobsAware’s Keith Roser explained: “Over the past three years we’ve seen this explosion in the use of TikTok, WhatsApp and other platforms to really scale this fraud.”

WhatsApp is particularly popular with the scammers.

JobAware said it had 412 reports of fake roles on the platform for 2024/25, compared with 161 reports for the previous year.

deliberate artifice, designed to shield assets from creditors.

LITRG website updated with latest tax info

The Low Incomes Tax Reform Group (LITRG) has been fully updated for the 2025/26 tax year, providing taxpayers, journalists and you with valuable resources to help understand the intricacies of the UK tax system. The website can be bookmarked by visiting www.litrg.org.uk

CIPFA’s June 2025 pass rates

The CIPFA results are in for June, and over 90% of sitters of the Management Accounting and Tax and Law (UK) papers passed this time around.

The Strategic Public Financial Management pass rates was also a very healthy 82.76%.

The Audit and Assurance June paper has the dubious honour of being the lowest pass rate this summer, at 52%.

The only other mainstream paper with a pass rate in the

fifties is Public Sector Financial Reporting (UK), with a pass rate this time around of 57.8%.

The international paper for Public Sector Financial Reporting proved very problematic. Not one of the five people who sat it in June passed, and in March the pass rate was 50% (four out of eight passed it).

CIPFA JUNE 2025 PASS RATES: Audit & Assurance 52.02%; Business Planning & Financial Management

Manchester students feel benefit

Students at Manchester’s three key universities have again benefitted from awards from MSCA Legacy and Chartered Accountants’ Livery Charity.

The recipients of this year’s awards are Rehan Ahmed and Laiba Waheed (Manchester Metropolitan University); Hui Xu, Zack Murphy and Panayiota Nayia Rossou (AMBS); and Shekinah Arafiena and Kiera Gray (University of Salford).

The scholarship is made

in recognition of excellent dissertations that engage meaningfully with topics that will have a major impact on the future of the chartered accountancy profession.

MSCA Legacy administers the funds formerly held by the Manchester Society of Chartered Accountants (MSCA). Founded in 1870, in recent years MSCA had operated as ICAEW Manchester while maintaining its own governance structure. In 2023

70.65%; Business Reporting 66.37%; Developing Strategy & Data Analysis 77.51%; Financial Accounting 71.32%; Governance & Risk Management 79.58%; Implementing Business Change 61.47%; Management Accounting 93.7%; Tax & Law (UK) 90.32%; Tax & Law (International) 64.29%; Public Sector Financial Reporting (UK) 57.8%; Strategic Case Study 62.62%; Strategic Public Financial management 82.76%.

its members voted to cease to be an independent entity and to become a network under the national ICAEW umbrella.

Putting AI into study mode

A new ‘study mode’ feature has appeared on OpenAI’s ChatGPT in an attempt to encourage students towards more cognitive/active learning, reports Times Higher Education (THE).

The tech giant explained that the ‘study mode’ option will allow students to work through questions step by step, instead of just getting the answers.

Open AI brought in academics from Stanford University to help develop this new feature.

James Donovan, head of education and cognitive outcomes research at OpenAI, told THE that the tool focuses on improving “cognitive outcomes and retention of information” and can help “hard bake” good educational practice into student learning.

He explained while the model goes some way towards discouraging student cheating, a ‘holistic’ approach is needed from universities. Donovan said: “The function of study mode offsets a little bit the risk of cheating in that it forces cognitive engagement. The whole point of it is to use Socratic dialogue and to make sure that people are actually doing what they’re doing.”

Laiba Waheed, Jonathan Grosvenor, Rehan Ahmed, Shekinag Arafiena & Hui Xu

ANNA KATE PHELAN

‘Invisible’ tech makes for a fair test

When you’re sitting an e-assessment the last thing you want is to waste mental energy dealing with technical hiccups. A well-designed digital exam puts the user experience (UX) first so you can concentrate on what really matters: passing!

Your assessment organisation (AO) and tech provider should be doing more than just delivering questions. They should be analysing how long candidates spend on different question types to spot usability issues that could slow you down. Good UX isn’t just a bonus—it’s essential to fairness and performance.

On top of that, practice makes perfect. You should have access to tutorials and practice tests in the exact same format as your real exam. No surprises equals less stress.

If you’re taking your test remotely, a proper system check beforehand is vital. A solid UX includes a seamless setup experience, so you’re not scrambling on exam day trying to fix your camera or internet connection.

The exam platform should follow universal design principles; working just as well for someone using a screen reader, making navigation intuitive and error-tolerant; there should be no nasty submission surprises.

Clear, labelled links. Easy-to-press buttons. A layout that just makes sense. These aren’t luxuries, they’re the building blocks of a fair test experience. A good exam experience is invisible. You barely notice the platform, because it’s working for you. And that gives you one priceless advantage: focus.

CIMA SCS results slip

The CIMA May exam results saw the Strategic Case Study pass rates slip back to 53%. This is the worst set of results since February 2024, when the pass rate was just 50%.

The Management Case Study pass rate was also down on previous sittings. It was 60% this time around; just a year ago it was 66%.

The good news came in the form of the Operational Case Study pass rate. It was a healthy 70% in May.

Stephen Flatman, Vice President, Examinations – Management Accounting (pictured), told PQ magazine: “For those who didn’t quite get the result they hoped for, don’t be discouraged. Take some

time to reflect on what went wrong and identify the steps you need to take to succeed next time.

“There’s a wide range of exam preparation materials available, such as the Examiner’s Report and the exam blueprints, to help you understand what’s expected, how to improve, and cross the finish line.

“You can also reach out to our team for additional guidance and support or check out our ‘Revitalise’

guides – we have one for the SelfTailored pathway and one for FLP So whichever route you’re taking, we’ve got you covered.”

Local authority audit ‘broken’

Local authority audit is broken, and just 4% of English councils were able to produce audited accounts for inclusion in the 2023-24 Whole of Government Accounts, says the National Audit Office.

This, says the NAO, compares with 10% producing audits for 2022-23.

It means that for the second

year in a row the Comptroller and Auditor General, Gareth Davies, has issued a disclaimed opinion for the 2023-24 WGA.

The WGA is a vital tool in the management and scrutiny of public spending, as it brings together all public sector assets and liabilities covering more than 10,000 departments, agencies and other government organisations. However, in England, of the 407 local authorities that should have submitted audited information into the WGA, 167 (41%) didn’t submit any data at all. A further 224 (55%) submitted data based on unaudited accounts. Only 16 (4%) of English local authorities submitted adequate audited data.

New standard on carbon-related instruments needed

The lack of a dedicated IFRS Accounting Standard for carbonrelated instruments is undermining the market, according to a study from ACCA and the University of Glasgow.

It means there is growing complexity and diversity in how companies account for carbonrelated instruments, which in turn causes confusion in the corporate reporting ecosystem.

The study, ‘Reality of accounting

for carbon-related instruments’, examined the annual reports of 300 companies in high-emitting sectors across the globe.

University of Glasgow’s Dr

Ioannis Tsalavoutas said: “Without guidance from standard setters, companies are developing their own accounting policies and providing information based on their own discretion. While the application of judgement when applying accounting policies is welcome, the use of substantially different accounting policies and different terms to describe these instruments undermines transparency and comparability.”

PwC launches Assurance for AI

PwC UK has launched ‘Assurance for AI’, a set of services to provide independent assurance and other related solutions for artificial intelligence (AI) systems.

It is vital organisations have confidence their AI systems are governed responsibly and compliant with regulation. These services are aimed at helping PwC’s clients meet this growing need to build trust in their AI systems. They will provide confidence that they are designed, deployed and operated responsibly, transparently and – in a growing number of situations – aligned with

regulatory expectations. By demonstrating this accountability and trustworthiness, organisations can strengthen their position and credibility in the market.

UK becoming attractive again

Deloitte’s latest survey of UK CFOs shows that finance leaders see the UK as the most attractive destination when it comes to investment – alongside India – with a net 13% describing it as very or somewhat attractive.

The survey, which took place in late June, is in contrast to the fourth quarter survey in 2024 when the UK came in sixth place, behind the US, India, the Middle East, emerging Europe and Japan.

Richard Houston, Deloitte UK CEO, said:

“These results reveal a shift in sentiment, with the UK now viewed as a leading global investment destination.”

Annual audit inspection results are in

The latest FRC annual audit firm inspection indicates continued improvement in audit quality, especially among Tier 1 firms.

Five out of the six (BDO, Deloitte, EY, Forvis Mazars, KPMG and PwC) achieved positive audit quality outcomes on 90% or more of their audits.

Worryingly, BDO continued to demonstrate recurring audit quality issues, and the FRC stressed the firm must urgently and robustly reassess how to improve its audit quality in these areas.

Anna Kate Phelan is Head of Product at Eintech

CIMA CGMA case study pass rates

Picture credit: NASA

Richard Simms, Owner and Director

of AMLCC

AMLCC has kept 15,000+ UK accountants, bookkeepers, TCSPs and tax professionals compliant since 2008 and has enabled over 10,000 AML regulatory inspections to be passed. Visit AMLCC.com to discover how AMLCC could work for you, or get in touch with our AML team. We’re endorsed by and partner with other AML supervisors and professional bodies.

HANNAH MACDONALD

Inclusivity must be for life

RSM going all in on AI

RSM UK has announced a strategic partnership with IntellixCore, a leading specialist AI consultancy, with the aim of super-charging its plans to become the UK’s leading AI-powered audit, tax and consulting firm.

Over the past 18 months we’ve supported trainee accountants at Accountancy Hub, with a focus on exam success, wellbeing, inclusion and workplace skills. Our Exam Resit Consultations are the most popular service we provide, where we identify the root cause of exam failure and develop a strategy for resitting, which might involve a private tutor or an exam coach.

We’ve collected diversity data from these enquiries for resit consultations as we wanted to be able to discover if there is a correlation between diversity and exam success.

Some 58% of trainees who’ve requested support from Accountancy Hub are black, Asian, mixed or other ethnic group. This compares with around 14% of the overall UK population. For me, this demonstrates that if we want to develop a truly diverse industry, with the diversity of thought required for optimum decision making and advisory services, we should be focusing on trainee retention and supporting those who might be struggling with work/ study/life during the first few years of their careers.

I often observe firms winning awards for their inclusive graduate and school leaver recruitment efforts, but where are those diverse trainees one year, two years and three years down the line?

At Accountancy Hub, we would like to see a greater focus on retention and holistic support, for all trainees to thrive in their early careers.

OpenAI and UK sign deal

The UK government has joined forces with OpenAI, the owner of ChatGPT, to help integrate AI into public services.

The new strategic partnership will see OpenAI look to deploy AI in areas such as justice, defence and security, and education technology.

Some critics have said that this means OpenAI will gain access to lots of sensitive government information, as part of the information sharing programme.

The partnership will be enabled through an AI orchestration platform to underpin RSM’s transformation to an-AI-centric operating model.

To help power this transformation RSM is also launching AI Lab to drive AI-enabled innovation and

adoption, ensuring AI usage across the firm is secure and ‘explainable’.

Chris Knowles, Chief Digital Officer at RSM UK, explained: “Being AI-centric is about rewiring your business around the capabilities of AI to the benefit of your clients or customers, with clear guardrails relevant to your industry and regulatory environment. This strategic investment in our new AI Lab, powered by IntellixCore, will help us achieve this strategic ambition quickly and responsibly.

“We have already made

significant progress, including training all our people on core generative AI skills. We have built AI into our tax solutions, such as our market-leading Tax Insight platform, to help our clients achieve global tax compliance.”

UK ban on paying cyber criminals

The UK government is planning to introduce new measures which it says will help tackle the threat of ransomware and protect businesses and critical services.

Public sector bodies and operators of critical national infrastructure (NHS, schools and local authorities) will be banned from paying ransom demands to criminals.

Under the proposals, businesses not covered by the ban would be required to notify the government of any intent to pay a ransom. The

government could then provide those businesses with advice and support, including notifying them if any such payment would risk breaking the law by sending money to sanctioned cyber-criminal

groups, many of whom are based in Russia.

Mandatory reporting is also being developed.

Security Minister Dan Jarvis (pictured) said: “Ransomware is a predatory crime that puts the public at risk, wrecks livelihoods and threatens the services we depend on.

“That’s why we’re determined to smash the cyber-criminal business model and protect the services we all rely on as we deliver our Plan for Change.”

Intelligent automations from QuickBooks

Intuit QuickBooks has unveiled a series of new product innovations which it says will help deliver a more intelligent and automated accounting experience.

Among the innovations is QuickBooks Payments, which allows users to connect their bank account to a ‘pay now’ button on invoices, so that their customers can complete a direct payment in just a few clicks.

Categorising bank transactions

Both OpenAI and the government have promised to “develop safeguards that protect the public and uphold democratic values”.

Your business resilience toolkit is here

CIMA has launched a Business Resilience Toolkit to help finance professionals and business leaders meet uncertain and challenging economic conditions head on. The institute stressed resilience is no

is one of the most repetitive and error-prone tasks in accounting. Intuit’s new AI-powered bank feeds in QuickBooks addresses this by learning from users’ previous actions and suggesting categories based on historical patterns.

Intuit has also streamlined and automated how its customers track the depreciation of fixed assets in QuickBooks Online Advanced, which now supports reducing balance depreciation, expanding

longer a luxury for businesses – “it is a necessity”.

The Business Resilience Toolkit offers a range of financial tools, strategic frameworks and prompts to help organisations, and CIMA hopes the toolkit will encourage fresh thinking.

CIMA’s Andrew Harding said: “With record numbers of businesses failing or under financial pressure, financial business partnering is essential to navigating uncertainty. The release of Business Resilience Toolkit will

its fixed asset capabilities to better meet the needs of finance teams.

The full suite of innovations can be explored in detail at Intuit’s new QuickBooks Launchpad

assist accounting and finance professionals in playing a critical role and business partners and strategic advisors to organisations.”

Google goes into AI mode

Google has said it is overhauling its search engine to act more like ChatGPT. It means users using the AI mode will not be provided with traditional list of links to website. Instead, Google’s AI will generate its own answers using information from what it finds on the web.

Hannah Macdonald is the founder of Accountancy Hub

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PQ Hall of Fame, Clare Finch 2025

PQs not shunning corporates!

It is not often I disagree with PQ, but I think your lead story last month was a bit off! You report that 75% of accountancy students say they want to start their own accountancy-related business, but that is simply not going to become a reality. Remember, if you ask a question in a certain way you always get the answer you want.

Most students will start working in accountancy and find the pay is good – too good to leave and take a risk of setting up on their own. And if you look at the stats the actual number of practices is shrinking, not growing.

The pull of buying a house and

having a family are also there, and both get in the way of any entrepreneurial spirit.

More fundamentally, the story shows that the next generation

isn’t prepared for modern corporate life, with its long hours and strange hierarchies. The pandemic has had a huge effect on the work psyche of younger people – they don’t even appear to want to work in the same office as other people now. This means they are happier working on their own, but that doesn’t make them entrepreneurial, it just makes them alone.

I think we need to reverse all this working from home malarkey. A maximum of two days working from home should be the norm. The problem is everyone has downsized the office, so everyone couldn’t come back to work even if they wanted.

Name and address supplied

Our star letter writer wins a fantastic ‘I love PQ’ mug!

You must show ambition

Well done Geoff Cordwell for putting a high price on ACCA PQs opting to stall their studies, waiting around for the introduction of the new syllabus in 2027 (PQ, August ’25, page 5). The £19,000 he quotes should resonate with many ACCA PQs, and he’s right that not getting qualified cost students money.

As an employer, I would also be acutely aware that anyone who came to me with a big gap in their studies had opted for the easy way out. That lack of ambition is something they would be bringing to my company! We all talk about lifelong learning, so what are these candidates’ attitude going to be about CPD? It is a worry. Name and address supplied The Editor says: I have to agree with this employer, we want all our readers to go from PQ to NQ as quickly as possible.

Big 4 favour tech over grads

No one should be surprised that Big 4 firms are using tech to replace graduates (PQ cover, August ’25). It is cheaper and saves money for what is important! The partners need

to keep their £1m pay outs, and anything that helps to achieve this seems to come first.

They talk about inclusion, diversity and community, but it’s all about keeping the partner community happy.

We are constantly told accountants must have

scepticism – I’m very sceptical that the Big 4 are truly a force for good. Yet, they all seem to get their OBEs and MBEs when the time comes.

It is hardly surprising that fewer graduates want to become an accountant.

Name and email address supplied

Tax Policy Associates founder Dan Neidle (pictured) is without doubt one of our fav people on LinkedIn. He provided another fantastic story: “Ex-Head of Tax at EY caught fabricating trust documents and calls it ‘normal practice’! That’s not a joke. It’s exactly what happened, as reported in Henshall v Solis Advisors Ltd [2025] EWHC 1886 (Ch). John Dixon, a former EY managing partner of the tax function, earning £2m a year, was declared bankrupt in 2017 after HMRC pursued him for £600k+ in unpaid tax. So far, so strange. But before that he cobbled together six Declarations of Trust and a fake loan agreement, transferring everything he ‘owned’ to his wife. His plan? Claim he had been ‘a man with no assets’ for years. He also claimed that this was normal practice for partners in professional firms like EY.

“The judge saw straight through it. She found many of the key documents to be artificial and ineffective. And called the arrangements ‘deliberate artifice’ designed to defeat creditors, including HMRC. This case is a brutal reminder: status doesn’t replace substance. Was Dixon naive, arrogant or crooked? The judgement makes clear that his evidence was not entirely believable. Has ‘normal practice’ ever been used in your firm as a smokescreen for reckless decisions? When does overconfidence tip into negligence?

“If you’re not sure, don’t wing it. Get a second opinion from an honest tax specialist via the Tax Advice Network.”

Read the full case here

If you have any

ChatGPT gets it wrong about latest merger!

So, what happened the last time CIPFA and ICAEW announced merger talks in 2005? Well, becareful where you look for the truth…

The announcement of merger talks between CIPFA and ICAEW has been coming. CIPFA has been ‘living in sin’ with ICAEW at Moorgate Place for quite a while now, so tongues were already wagging.

PQ magazine decided to ask ChatGPT about past mergers and we were shocked to read about the last attempt in 2005. We were initially told that CIPFA members rejected the merger idea outright, and the AI explained at the time CIPFA members argued their unique focus on the public sector would be lost in a larger corporatedominated body. Another fear was, as a junior partner, CIPFA would not be setting the real agenda and culture. All that meant ICAEW members never got to even vote for the merger.

That all sounded plausible – but it just wasn’t correct!

We had to tell ChatGPT to read the PQ magazine articles

on the issue. The truth is CIPFA members were overwhelmingly supportive of the merger – they voted 86.7% in favour.

However, ICAEW members voted 65.7% for the merger, but the threshold for moving forward was 66.7%, so the merger failed by just one percentage point.

Both bodies signed a memorandum of understanding, but as we explained at the time this fizzled out and did not result in any formal merger.

Here we have a prime example of how ChatGPT can

get it wrong. We have corrected it, so anyone reading about the failed 2005 merger will know what actually happened, so can ignore the ‘hallucination’.

But ChatGPT isn’t wrong all the time. We asked it about magazines for accountancy students and it said: “PQ magazine is a standout resource for accountancy students and part qualified professionals. It is widely regarded as the most accessible and practical magazine tailored to exam preparation and student life.” Spot on ChatGPT, we say!

ICAEW CEO Alan Vallance and CIPFA’s CEO Owen Mapley sign the Heads of Terms agreement

Child trafficking in plain sight

Richard Simms explains how you could unwittingly be facilitating organised crime, including money laundering and child trafficking

If someone asked you whether your firm might be helping a trafficker launder money, you’d probably say no. And you’d mean it. You’ve done your training. You carry out your client checks. You know the rules. Besides, child trafficking is the stuff of documentaries and criminal trials. Not the kind of thing that starts with a polite man in his thirties walking into your office asking for help registering a company.

But this is exactly why it works. In most cases of child trafficking, the profits don’t need to be smuggled or stacked in suitcases. They just need to be presented well enough that someone like you helps move them into the legitimate economy.

And that someone is almost always a regulated professional. Not corrupt. Not careless. Just busy, trusting and trying to get the job done.

The exploitation is happening but you’ll never see it

The UK’s National Referral Mechanism received over 7,000 child referrals in 2022 alone, which accounted for nearly half of all modern slavery referrals that year. Many of these children are British.

A significant proportion are being exploited by criminal gangs to commit crimes: running drugs across county lines, cleaning cannabis farms, working in informal brothels or nail bars, begging, or fraudulently claiming benefits.

To the outside world they may look like troubled teens, undocumented workers or young people in low-paid roles. But to their exploiters, they are an asset class. Replaceable. Disposable. Profitable.

Each act of exploitation, every drug drop, every coerced sex act, every day washing cars without pay, brings in cash. But cash has limitations. It’s awkward to dispose of, and eventually becomes too dangerous to hold. That’s when it’s time to turn it into something clean. Something that can move through banks, fund property deals, be reinvested.

And that’s where you come in.

Ask no questions

You’re approached by a prospective client who wants to register a limited company. Perhaps it’s a small beauty business. A courier operation. A cleaning service. You run a few checks: their ID matches, they have a registered office (albeit virtual), and they’ve filled out your forms without a fuss.

They say they’re just getting started, or they’re looking to get things organised now that business is picking up. You’ve heard this dozens of times and take them on as just another new client.

The financials will be mostly cash-based, they tell you. Some of it might be subcontracting, some consultancy, some ‘community work’. It’s irregular. As the relationship progresses, it’s clear they’re not great with invoices. But they’re polite, prompt and responsive.

They ask for your help preparing the first year’s accounts. The turnover’s healthy. You spot that there are no real staff costs, but they say they pay in cash or use casual labour. Again, not ideal… but not out of the ordinary for their type of business.

Cleaning the cash

You don’t see the child who was trafficked across county lines to run drugs. You don’t see the girl working unpaid hours in the back of a high street salon. You don’t see the teen whose benefits are claimed under a false name.

You see cash income. Bank transfers. A rudimentary spreadsheet. You ask about source of funds, and they say it’s from ‘private clients’, ‘small jobs’ or ‘service fees’. There are no contracts. No audit trail. But you’ve seen plenty of small businesses operate informally in their early years. You prepare the accounts, submit the CT600, maybe help with VAT registration. The business is now official, on paper. You’ve done your job.

But that cash, originating in criminal exploitation, is now inside a company bank account. And every filing you assist with adds a layer of legitimacy.

Your credibility is key

You’re the gatekeeper. When you onboard a client, submit documents or sign off financials you’re lending your professional weight. Banks, HMRC

and regulators assume due diligence has been done. Your involvement says, “this business has passed the checks”.

The trafficker knows this. They don’t need you to skip steps. They just need you to apply them routinely, treat them like any other client and accept their story, because it fits a pattern you’ve seen before.

You won’t hear from the people being exploited. You’ll hear from the trafficker, the one with a calm manner, and just enough paperwork to keep the process moving.

Once inside the financial system, the money can be layered. It might be paid to the director as a salary or distributed as dividends. Or moved to another company as a ‘loan’. It might be used to rent commercial property, buy a van or transfer to a crypto exchange.

Each transaction adds distance between the crime and the cash. And every time you’re involved, advising on tax, preparing a cash-flow forecast, filing a confirmation statement, you’re helping reinforce that façade. You’re fulfilling your brief. You’re applying the processes as you understand them. But in doing so, you’re smoothing the path for money generated through the exploitation of children.

Staying under the radar If it works once it’ll work again. The trafficker sets up more businesses. Different names, different sectors, different addresses. Each one small, unremarkable and plausible.

They may use other professionals, too: estate agents to secure premises, solicitors to set up partnerships, or tax advisers to apply for reliefs. But you might be the constant: the person who helped launch the first company and now handles its annual filings.

Nothing about your work raises concern. The businesses are modest. The filings are timely. The client is compliant. But behind the scenes, the network is expanding. More children are being drawn in. More cash is being generated. And your work is part of how it gets recycled into the mainstream economy.

Then someone starts asking questions. Perhaps a victim or member of the public reports what’s happening. Or perhaps a bank flags the business for unusually structured deposits. Suddenly, your filings are part of the investigation. Your due diligence files are requested. Your SAR register is reviewed. You’re asked what risk assessment you performed. What questions you asked about source of wealth. Why you didn’t escalate anything.

You explain that the client seemed credible. That the paperwork was provided. That you had no obvious reason to suspect anything. And that might be true. But it might not be enough.

Under the Proceeds of Crime Act, a failure to report suspicious activity when a reasonable professional should have can carry legal and regulatory consequences. And “they didn’t seem suspicious” isn’t going to be a defence – unless you’ve got the audit trail to back it up.

Making the difference

You don’t need to see abuse or hear confessions to take action. You need to notice what doesn’t fit. And act on it. That might mean:

• Asking for actual evidence of how the business generates revenue.

• Applying enhanced due diligence to vague or cash-heavy business models.

• Reviewing your risk assessment template to make sure it reflects real-world red flags.

• Using tools that track PEPs and sanctions, and flag unusual patterns in client data.

• Making sure AML policies are tailored to your business, not copied from someone else’s file. Above all, it means being willing to challenge stories that sound convenient but lack substance.

This is happening now

Traffickers don’t need to hack the system. They just need to use it as it is. They rely on gaps in process. On rushed onboarding, over-reliance on standard ID checks and on the human instinct to believe someone who seems polite, respectful and organised.

But you can make yourself harder to use by embedding AML into your workflow. Not as a tick-box exercise, but as a live, thinking process. One that adapts as risks change. One that gives you the confidence to ask hard questions, and the tools to record and escalate what you find.

• Richard Simms, Founder and Director of AMLCC

Managing change

Karen

Groves explains PESTLE

analysis, used to assess macroenvironmental factors that can impact a business

Envorinmental

Factors

Political Factors

Legal Factors

PESTLE ANALYSIS

Economic Factors

example changes in tastes and lifestyles and unemployment.

Technological

The technological environment includes changes in technology and impact on structure (for example internet sales). This is influenced by government spending on research and development.

Legal

The legal environment includes trade regulations and changes in law and regulations.

Environmental

The environmental environment includes environmental changes and sustainability, for example, a business will need to adhere to environmental legislation and consider environmentally friendly substitutes for materials.

Example

A magazine company would monitor the following factors:

Political: VAT on magazines which is currently zero rated. If this changed it could impact on sales.

Economic: If in a recession, disposable income would change and therefore impact on sales. If paper for printing is imported, exchange rates would also be monitored as this would impact on the costs.

Technological Factors

For a business to succeed, it is important that they understand the environment they are operating in and identify any opportunities or threats.

There are three levels in a business’ environment including the macro environment, the industry environment, and the internal environment.

The PESTLE model is used for analysing the businesses macro environment as follows:

Political

The political environment includes:

• Government policy – which will change when a new government is elected. Each will have their own objectives on matters such as climate change.

• Taxation – which can impact on consumer spending.

• Imports and exports – the government can use import quotas and tariffs to make it challenging for foreign companies to trade in the UK.

• Public spending – for example, on housing, education, and healthcare.

Economic

The economic environment includes:

• Interest rates – how much it costs to borrow

Social Factors

money, the higher the interest rate the higher the mortgage and loan payments will cost.

• Exchange rates – a change in rate will impact what has to be paid to international suppliers and received from international customers.

• Changes in disposable income – the higher the level of disposable income, the higher the spending will be on non-essential items.

• General state of the economy – for example, entering or emerging from a recession.

• Business cycles – the economy will go in cycles, for example from recession to a boom period. During a boom period, companies selling non-essential items will achieve higher profits than when in recession, when people do not have as much money to spend on these items.

• Demand-pull and cost-push inflation –demand-pull inflation is caused by demand being higher than supply, which in turn increases prices. Cost-push inflation is caused by a shortage of a product, for example gas, pushing the prices up.

Social

The social environment includes demographic changes for example how the population is made up, including age, household structure, cultures, education and trends, for

Social: Current trends as this would impact sales if the magazines were not up-to-date.

Technological: For a magazine printing business, they would need to also provide electronic copies to keep up-to-date with technology.

Legal: Consideration on data protection regulations depending on content.

Environmental: Consideration regarding the carbon emissions from using paper and printing, any wastage, recycling processes, and so on.

Questions

Now test your understanding.

Q1. Aneesa is studying PESTLE analysis and has queried which section taxation would fall into?

• Political.

• Economic.

• Social.

• Technological.

• Legal.

• Environmental.

Q2. Matthew is studying PESTLE analysis and has queried which section demographic changes would fall into?

• Political.

• Economic.

• Social.

• Technological.

• Legal.

Answers: Q1. Political; Q2. Social

• Karen Groves is an AAT tutor and Faculty Director of Accounting at e-Careers

Future in your hands

Get ready for your next exams with the SA app

As another exam session approaches, staying organised and focused becomes more important than ever. That’s where the SA app comes in, with its targeted, practical support to students preparing for their upcoming exams.

One of the app’s most powerful features is the ‘preference centre’. This allows you to easily select the exams you’re planning to take. Once you’ve done so, the SA app will then deliver tailored guidance and support through push notifications, so you’re always aware of what needs to be done and when.

In the lead-up to exam day, the SA app will keep you on track by:

• Reminding you about the latest exam-specific

webinar(s) relevant to your studies, hosted by an expert tutor to help deepen your understanding of key syllabus areas.

• Alerting you to the availability of mock exams and debrief videos, designed to boost your exam technique and understanding.

• Giving advice on how to get the most out of essential exam preparation resources like the ACCA Study Hub and Practice Platform.

• Equipping you with essential tips straight from the examining team relevant to your studies.

• Providing links to technical articles, which will help sharpen your knowledge and address any areas of weakness identified in your mock exams.

• Plus much more.

Accessing and using the SA app’s preference centre is quick and easy.

1. In the downloaded version of the SA app on your mobile device, go to the settings page (to do so, click on the cog wheel icon located at the top right of the screen).

2. Select ‘Choose your exam alerts’.

3. Activate the relevant exam toggle(s) in the list for your September exam(s) only to be notified about the exam support most relevant to you in the lead up to the September session.

It’s as simple as that!

If you haven’t already, download the SA app today for personalised support that could make all the difference to your exam preparation. It is available on the App Store and Google Play.

• Thanks to ACCA for this article

Proven to boost your exam results

Study Hub is proving to be a great success for ACCA students, increasing exam results by as much as 18%*. With online access to study chapters, practice questions, flashcards and short quizzes, it streamlines revision and enhances your understanding.

Use Study Hub as an essential part of your exam prep and boost your chances of success.

*Based on pass rates of Study Hub users vs. non-users for the September 2023 session-based exams.

Managing risk

Teresa Clarke tackles a topic area that’s of special interest to Level 3 Business Awareness students

IMPACT

The TARA framework is a tool that can be used to assess and manage risk. It enables us to classify risks into two variables: the likelihood or probability of it happening, and the impact of it happening.

Likelihood or probability means the chance of it happening. For example, the likelihood of it raining in December in the UK is high. The likelihood of it raining in August in the UK is low. Impact means the effect that it will have on the business. Getting rained on while out for a walk will have very little impact or effect as we can dry off when we get home. Getting rained on when we are studying in the garden with our computer, phone and all our books out may have more impact because all our books, computer and phone may get damaged and need replacing.

The acronym TARA means: Transfer / Avoid / Reduce / Accept

To use TARA to assess a risk, we need to look at the framework in a diagram.

IMPACT

To transfer the risk means that the risk is shared with or transferred to another person or business.

To avoid the risk means the risk should be avoided completely.

To reduce the risk means reducing the risk to an acceptable level.

To accept the risk means that the outcome is more important than the risk.

Taking the example of studying in the garden in December in the UK, the probability of it raining is high. The impact of getting rained on is high. If we look at that in the TARA model, we can see that this activity should be avoided.

Taking the example of studying in the garden in August in the UK, the probability of it raining is low. The impact of getting rained on is high. If we look at that in the TARA model, we can see that this activity suggests we transfer the risk. So, we could still study outside, but make sure that we have insurance to cover any damage caused by doing so.

IMPACT

LOW HIGH

PROBABILITY HIGH REDUCE AVOID

This is only a fun example, so let’s just do one more with a business scenario.

Your building company has been offered the job of dismantling redundant wind turbines just off the coast of Norfolk. A risk assessment has been carried out and it has been confirmed that all safety precautions have been put into place to protect the employees, and the only possible risk identified is of the employees slipping when climbing back into the boats at the end of the day, potentially causing minor injuries. The risk assessment has identified this as a likely hazard.

IMPACT

LOW HIGH

PROBABILITY HIGH REDUCE

The TARA model suggests that we should reduce the risk. We could do this by ensuring that all employees wear non-slip shoes, or the walkways be covered in a non-slip surface. Try to think of a scenario for a business decision and use the TARA model to help you decide to deal with the risk.

How to identify the VAT tax point

Teresa Clarke explains a subject that’s especially pertinent to Level 3 Tax Processes for Business students

When you are given a lot of information in a task, it can be tricky to identify the VAT tax point. This diagram should help. First, look at the dates you have been given in the task and put them into date order. Which came first?

Was the invoice issued within 14 days of the delivery date

Yes: The invoice date is the Tax point

No: The delivery/dispatch date is tax point

If you like my way of explaining things, you might like my workbooks, which are all available from Amazon in both paperback and as eBooks. The links to all my workbooks can be found at https://www.teresaclarke.co.uk/ • Teresa Clarke is a freelance accounting tutor

When the numbers talk back

Dr. Faisal Sheikh and Mark Ingram discuss how AI will impact the future of accounting. So will the machines take over?

The accounting profession is rules based: derived from double-entry systems with compliance checklists, audit trails and IFRS frameworks. It is firmly embedded in the laws of all modern states.

But AI, particularly in its most recent forms, is not about ‘playing by the rules’. It learns. It adapts. Sometimes it appears to hallucinate. But most of all it uncovers patterns faster than most of us can imagine.

So what if a spreadsheet can think and talk back? What if it can offer forecasts, interpreting legal codes, learn our behavioural habits and perhaps, even sooner than we think, refuse our inputs and challenge our conclusions?

Whilst we are at an accounting turning point, this is not for the first time.

The introduction of the spreadsheet and computerised accounting systems in the 1980s changed accounting. Back then, it was data entry clerks who felt the heat. Today, it could be middletier auditors, analysts, even financial controllers. Similarly in the 1980s and 1990s the replacement of local bank managers, and their local human knowledge, with centralised bank lending algorithms arguably contributed to the US subprime mortgage proliferation and the subsequent world financial crisis.

Yet this change will be big. In 2022 the World Economic Forum estimated that by now, 2025, over 50% of all accounting-related job tasks would be performed by AI or algorithms.

Who is using AI?

From KPMG’s Clara platform to Deloitte’s use of machine learning in fraud detection, AI is already woven into the accounting mainstream. EY’s Helix platform processes massive volumes of structured and unstructured data during audits. PwC has deployed natural language processing (NLP) tools to comb through contracts and financial statements in real time.

Even outside the Big 4, startups such as MindBridge Ai are offering risk-scoring engines that help accountants flag anomalies before the human brain would even notice them. And, perhaps closer to home, many are familiar with Xero, QuickBooks and Avalara offering real-time

reconciliations, automated expense classification and multi-jurisdictional compliance at a fraction of the traditional cost.

This isn’t automation in the narrow sense of eliminating repetitive tasks. It is ‘cognitive outsourcing’ – a shift in who (or what) makes decisions. That doesn’t mean such tasks go unchecked, but that the accountants task changes from performing a task to managing those tasks, checking their reasonableness and interpreting their results. This is essential because, as the spreadsheet taught us: “To err is human, but to really stuff up requires a computer.”

What’s next?

What happens when AI systems make predictions or decisions we cannot easily explain or check, yet we trust them because they outperform us? We call this the displacement of interpretive authority.

This is where the theory of Technological Determinism (McLuhan, 1964) becomes relevant. If left unchecked, tools begin to shape social structures and human behaviour more than humans shape tools. AI doesn’t just change the how of accounting – it risks redefining the why and who.

In 2023 an AI tool at a mid-sized UK firm flagged multiple ‘non-compliant’ transactions by a high-performing manager. The tool’s algorithm weighted certain wordings in email communications as ‘suspicious’, despite being colloquial and contextually innocent. The manager was placed on suspension before a human had even reviewed the claims. This echoes the recent Post Office Scandal. It is not just a technical failure; it is a philosophical one. Should AI make key decisions unchecked?

ACCA and the ethical mandate

The ethical principle of objectivity means to exercise professional or business judgment without being compromised by:

• Bias

• Conflict of interest, or

• Undue influence of, or undue reliance on, individuals, organisations, technology or other factors.

In their 2024 report ‘Ethics for a Digital Age’,

ACCA reaffirm that professional accountants must go beyond technical competence, they must develop what ACCA terms ‘ethical tech fluency’: the ability to interrogate, challenge and contextualise digital outputs.

Among their recommendations:

• Redesign CPD: Continuous professional development must now include data ethics, AI bias and algorithmic transparency, not just simply IFRS updates.

• AI Governance Codes: ACCA members should be equipped to participate in AI oversight frameworks, both within firms and across sectors.

• Digital scepticism: A mindset that balances openness to innovation with cautious interrogation (desperately lacking during the UK Post Office scandal!).

These ideas resonate with Giddens’ Structuration Theory, which holds that human agency and structure must co-exist in a feedback loop. Accountants, as agents, must shape the digital structures they operate within, not simply comply with them.

Preparing for the post-human accountant?

For employers, the question is not whether to adopt AI, but how to integrate it without eroding trust, judgement or wellbeing. A PwC 2023 internal survey found that 48% of junior accountants were already experiencing

‘automation anxiety’, with many unsure whether to upskill or exit the profession altogether. Here are some concrete strategies firms can consider:

1. Create AI-accountability committees: Just as audit committees provide checks and balances, dedicated AI-accountability committees should review how algorithms are used in financial decision-making. These should likely include human professionals from multiple disciplines including finance, ethics, law and tech.

2. Invest in ‘human-AI collaboration’ training: AI should be likened to a cognitive companion that requires oversight. Training in this skill might include scenario-based workshops where AI outputs are contested, interpreted, or rejected. ‘Rubbish in, rubbish out’ applies to AI too!

3. Rethink recruitment: The accounting profession has traditionally prized attention to detail, client confidentiality and rule-following. But in an AI-rich future, judgement, curiosity and ethical awareness and resilience may matter more. Firms must look for ‘AI-resilient accountants’: those who can challenge outputs and temper AI’s ethically agnostic and potentially flawed conclusions with reasonableness tests and human ethical values.

4. Mental health matters: If decisions about job security are being shaped by AI predictions, the psychological safety of employees becomes

central. Transparent policies, appeal mechanisms and human-led discussions must be enshrined in company culture.

Case study: the Danish data dilemma

In 2024, a Danish logistics firm implemented a new AI-based financial forecasting model. Within six months it had cut reporting times by 60% and improved forecast accuracy. But an internal review revealed that no one in the finance department could fully explain how the model derived its assumptions.

When auditors flagged a potential breach in compliance (related to revenue recognition), the finance director responded: “We trust the model more than we trust our own assumptions now.”

This led to a regulatory inquiry: not because the model was wrong, but because its opacity violated principles of transparency and explainability, tenets central to the ethical practice of accounting, as shown in the ACCA ethical code mentioned above.

(By the way, Mark is uncomfortable with how Xero calculates FX gains and losses… he should dig deeper!)

What if AI out-thinks us?

We are inching toward a moment when artificial general intelligence (AGI) may outperform human accountants not just in speed, but in judgement. If

this threshold is crossed, what remains for the role of the accountant?

‘Humanity’ can only be displayed by humans. AI may write a flawless IFRS 15 revenue memo in seconds, but it cannot yet sit with a grieving client or co-worker, or navigate ethical grey zones with the sensitivity born of lived experience. (Indeed, not all humans appear able to demonstrate such skills!)

Philosopher Michael Polanyi reminds us in Tacit Knowledge (1966): “We know more than we can tell.” The future of accounting may depend on precisely that kind of knowledge – knowledge that is tacit, embodied and, above all, human.

For employers, this is the time to resist the ‘race to the bottom’ (and potential disaster) and instead invest in ethical, human-centred AI integration. For ACCA and other professional bodies, this is a moment to lead with wisdom.

For accountants, your role is pivoting but not disappearing. No machine can yet reliably replicate your judgement, curiosity, humanity and ethical spine.

In conclusion: a lesson from 1494?

AI is an amoral tool, not a saviour nor a saboteur. But as with any powerful tool, its impact depends on how it is wielded, and by whom. In his Summa de Arithmetica (1494), Luca Pacioli suggests: “A person should not go to sleep at night until the debits equal the credits.”

By insisting that the books be balanced before nightfall, Pacioli is suggesting a broader moral vision: that integrity in financial practice is inseparable from integrity of character. To deceive in numbers is to fracture something inward. Accounting must reconcile with both your books and your conscience.

Pacioli was writing about your ethical alignment, a kind of ‘spiritual bookkeeping’ where honesty, diligence and balance were markers of a just life. Such a worldview is fundamentally rooted in a human moral struggle – something no algorithm, however advanced, can experience or replicate.

• Dr. Faisal Sheikh is Principal Lecturer in Accounting at Nottingham Business School. CHECK Mark Ingram is a lecturer at FME Learn Online

The art of accounting

A piece of conceptual by Maurizio Cattelan, consisting of a banana stuck to a wall with duct-tape, sold in New York last year to a cryptocurrency entrepreneur. The banana sold for $6.2 million.

Oh and just in case you didn’t know his piece was entitled ‘Comedian’.

Get into the groove…

Lost your study groove? Georgina Roberts explains how you can get it back

It’s been a while since you saw an exam paper and maybe you’re now not quite so sure that accounting and finance is your calling.

Perhaps you’ve been snowed under at work; have taken parental leave; dealt with numerous family issues; experienced poor health; or just been totally wiped out with study fatigue. These are just a handful of the many valid reasons we hear from students who’ve decided to get off the hamster-wheel of their accounting exams.

The quickest you can complete all the exams (13, for ACCA – at present) is three to four years, and don’t forget the three years of your PER (Practical Experience Requirement) to evidence as well. It’s a long haul even if you power on through.

So if you’re one of the estimated 60% who take a study break you’re in good company. But how do you go from zero studying to doing enough to get you back into it and passing the next exam on your list?

We recently hosted a webinar with ACCA on this emotive subject, and here we’ve curated some practical ideas to get you motivated and, hopefully, excited about studying again.

Why did you pause your studies and what solutions can you find?

Family

If you paused studying due to family responsibilities and the feeling that no one was getting the best version of you (let alone yourself), then you need to set some boundaries. Start by scheduling in small blocks of study, say, in the early morning before the house wakes, or after the children’s bedtime. Discuss your study goals with a family so they’re aware that this study time is important to you and gain their support. Use short, focused study sessions –consistency is more important than duration.

Burnout

Coming back stronger, rested and having a strategy will help. Set yourself realistic goals for each study session to avoid feeling overwhelmed. Take it topic by topic from the syllabus and build up. Prioritise self-care at home and in the workplace. If a task can be delegated then why wouldn’t you? If you need to leave the office at 5pm three nights a week so you can get home, relax and still have time to study, then make your

mentor or line manager aware of this and your reasons why.

Work

Plan study time around work shifts or busy periods – use a calendar so you can visualise your commitments. Your lunch break is valuable time. You can listen to a study podcast while you walk, read a technical article, take an online class of 20 minutes or watch some video tutorials while you eat. Ask your employer or mentor about support for studying – perhaps they can arrange some flexi-time around exam periods, or professional development time set aside so you can take a study day.

Confidence

Boost your confidence by finding a study provider that takes the stress out of learning on your behalf. By that we mean a provider that simplifies, structures and offers guided tuition. Self-studying can seem daunting in your own time, but from aCOWtancy’s 12 years’ experience of teaching ACCA online we know that students who feel supported in their studies feel naturally more confident. Celebrate the small wins – complete one class a day or master one calculation.

Once you regain your drive, remember you’re doing this for a reason. Remind yourself consistently about WHY you want to get back into studying – a better job, a pay rise, running your own business, fulfilling a career ambition or just finishing the journey. It may take you longer than you once thought but it’s do-able.

Our star student

Chanel, from South Africa, took just six ACCA exams in five years. Then had a four-year study break. Discovering aCOWtancy.com, she got stuck into our online classroom and completed (and passed) 11 exams in two years!

For two of these exams she was South Africa’s ACCA Prize Winner, as seen above, receiving her certificates with Helen Brand, CEO ACCA.

Our experience as an established Gold Approved ACCA learning provider demonstrates clearly that getting back into the study groove can be done with a little effort and a lot of determination. As Chanel said: “If a cow can get me through ACCA, trust me, it can get you through it too.”

You don’t have to be a prize winner, just getting started again quietly, slowly and steadily is a winning strategy.

• Georgina Roberts, aCOWtancy.com

Prize guy: Chanel, an award-winning aCOWtancy student, with ACCA CEO Helen Brand

progression.

Level up at work with the CGMA® Finance Leadership Program (CGMA FLP).

The CGMA FLP is your flexible path to CIMA® membership and the globally valued CGMA designation. Fully online, the CGMA FLP can be completed anytime, anywhere and at your pace. Be on your way to higher salaries and professional recognition today.

A question for Tom

Tom Clendon tackles a question on an international standard that frequently causes problems for students

The question

Can you summarise what IAS 16 Property Plant and Equipment is about and explain its revaluation accounting rules?

Tom’s answer

IAS 16 Property Plant and Equipment is the standard that regulates how we account for tangible assets that have been bought for use within the business and have an expected life of more than one year.

Examples of such assets include office buildings, computers and machinery. Such assets must be depreciated so that their cost is spread over the accounting periods expected to benefit from their use. An exception to this rule is land. This is because land has an infinite life.

Revaluation – or not?

The standard gives the preparer the choice as to whether such assets are revalued or not. If the accounting policy of revaluation is adopted then the valuations must be kept up-to-date, all similar assets revalued and depreciation must continue to be charged on the revalued amount. In very simple terms, the revaluation gains

and losses arising are recognised in equity and reported in other comprehensive income. However, it is possible that revaluation gains and losses are recognised in the statement of profit or loss.

Revaluation rules

The revaluation rules as to where revaluation gains & losses on property plant and equipment are recognised can be summed up as follows:

“Gains go to equity unless a reversal of a loss charged to the statement of profit or loss. Losses go to equity until the reserve relating to that asset is exhausted, then losses are charged to the statement of profit or loss.”

This is all best understood through an example.

Application of the rules

Consider some land that cost $100 and is revalued to $150, then a year later to $90 and another year later to $125. Let us consider how each revaluation gain or loss would be accounted for.

The first revaluation is $150 and with a cost of $100 there is a gain is $50. All of the gain is recognised in equity and reported in the statement of other comprehensive income.

The second revaluation is $90 and with a carrying value of $150 there is a loss of $60. The first $50 of the loss to recognised in equity and this then exhausts the reserve that relates to that asset. The further loss of $10 is charged to the statement of profit or loss.

The third revaluation is to $125 and with a carrying value of $90 there is a gain of $35. The first $10 of the gain is recognised in the statement of profit or loss as it reverses the loss previously taken there. The remaining $25 gain is then to equity.

• Tom Clendon FCCA is a podcaster, an online SBR lecturer and a WhatsApp addict (07725 350793). See www.tomclendon.co.uk

Let the games begin…

From lectures to leadership: Katherine Genower takes you inside CIPFA’s Management Games

What happens when over 200 first-year university students are thrown into the hot seat of a fictional NHS Trust, tasked with making high-stakes decisions under pressure?

That’s exactly what played out during CIPFA’s recent Management Games at Lancaster University – an immersive two-day simulation that brought the realities of public sector leadership to life for 240 students studying Accounting and Finance.

Designed to test and build core professional skills, the games challenged students to step into leadership roles and wrestle with the complex trade-offs that define public sector work.

A real-world challenge

Delivered by CIPFA’s engagement team, the Management Games replicate public finance in action – under pressure, in real time. Teams were tasked with responding to a series of escalating scenarios requiring them to:

• Make high-impact decisions.

• Balance budgets with limited resources.

• Communicate complex ideas to non-specialists.

• Navigate crises and stakeholder expectations. The game framework simulates the difficult realities public finance professionals face daily –from responding to scrutiny by elected officials to managing media fallout and stakeholder pushback.

Bringing

learning to life

I spoke to Dr Stacey Noble, Teaching Fellow at Lancaster University, to understand the impact of the experience:

Katherine Genower: What made CIPFA’s Management Games stand out?

Stacey Noble: The energy, realism and relevance. Our students don’t often get a chance to apply what they’ve learned in such a dynamic way. CIPFA brought real public sector challenges into the classroom and made them tangible.

KG: How did students respond to the simulation?

SN: They were fully immersed – so much so we had to remind them to take breaks! Many didn’t want to stop and asked for additional curveballs to make it even tougher. That level of engagement says a lot.

KG: What lasting impact has it had?

SN: It’s already shifted how some students see their careers. I’ve had several ask how they can get more involved with CIPFA or explore public sector opportunities. It’s rare to see that kind of momentum from a single module.

KG: Any advice for other universities considering it?

SN: Go for it. CIPFA’s team is incredibly supportive and adaptable. The content is academically robust but also practical, and it works across undergraduate and postgraduate levels.

Inspiring future leaders

CIPFA’s Management Games are more than a teaching tool – they’re a career catalyst. By helping students understand the skills, pressures, and purpose of public service, they’re sparking early interest in careers that make a difference.

• Get in touch at YourFuture@cipfa.org to explore how CIPFA can enrich your students’ understanding of public sector careers.

• Katherine Genower is CIPFA Programmes Engagement Coordinator

Class act

If you want to get ahead then you should sign up for the Class of ’25, says Nasheen Wuisman

Planning on sitting your CGMA Case Study exam in November 2025 or February 2026? Then join our programme, which gives you seven weeks of interactive study and exam support presented in an Online Study Guide and calendar which will help you plan your studies weekly.

96% of the Class of ’24 said this provided them with a structured study plan

If you have completed your OT exams or competencies at any level, or if you have one OT or your final competency to complete, the Class of ’25 programme will help you plan your time, your exam preparation and give you curated resources to develop all the skills you need to be successful in your Case Study exam.

94% of Class of ’24 candidates said this programme helped them to plan and manage their time to prepare for the exam

Since winning a PQ Award in 2022, the programme has been upgraded, enhanced and is now more successful for our candidates than ever before.

100% of CGMA Finance Leadership candidates from the Class of ‘24 Season II said they would thoroughly recommend the programme to fellow candidates

Join thousands of your peers, as you work towards the same goal and join the Class of ’25 today.

Choose the link for your pathway:

• Self-Tailored CIMA pathway

• CGMA Finance Leadership Program pathway

Got questions? Ask Nasheen

Need advice on study challenges, exam preparation, or learning tips? I’m here to help. Send your questions at CGMAStudySupport@ aicpa-cima.com

• Nasheen Wuisman, Senior Manager of Global Academic Progression at AICPA & CIMA, together as the Association of International Certified Professional Accountants

Top tips to pass CTA exams

Passing a CTA Advanced Technical or Application and Professional Skills exam is not just about working hard and blitzing past papers. Nitin Rabheru explains why

Having taught professional tax exams for over 25 years, one of the biggest challenges I face – especially with first-time sitters or retakers – is helping students understand that blitzing past papers alone is not the key to passing a CTA exam.

In my experience, the CTA exams are as much about mindset and training your brain to solve tax problems as they are about technical knowledge. Unfortunately, many students underestimate the demands of the CTA qualification, assuming the examiner will simply recycle questions or test familiar patterns. Here’s the truth: CTA exams demand strategy, structure and a problem-solving approach.

My top tips

1. Get your tutor to walk you through past paper questions

From day one of the taught phase, I walk my TOLC AT and OMB APS students through past questions. This builds early confidence and teaches students how to read, interpret and plan their answers properly.

2. Deep dive into key application questions

For OMB APS students we dedicate a full seven-

hour session on day three of the taught course to review the most recent OMB APS question. We deconstruct how it should be planned, structured and implemented into a professional report. This isn't just about answering a question – it’s about learning how to think like a tax adviser.

3. Adopt a scenario-based approach Memorising tax rules or drilling through the question bank isn’t enough. Instead, you need

to train your brain to spot issues, interpret client scenarios, and apply tax legislation with precision.

4. Learn to identify the core issues quickly

One of the biggest stumbling blocks is not knowing how to start. Success in CTA exams depends on your ability to spot the key issues, tax problems and relevant facts in a question –and do so under pressure.

5. Create a 60-second written answer checklist

Before you write an answer, take 60 seconds to note key points, trigger words, and any tax terms that must appear. Use memory aids like flashcards or memory joggers to keep this process sharp and consistent.

6. Prepare for computation with proformas and a game plan

Build a library of proformas and practice using a consistent computational plan of attack. This ensures you know what to do even when numbers look unfamiliar or complex.

7. Review, annotate, practice – then repeat Keep reviewing and annotating past questions and examiner reports throughout the taught phase. Many students leave this too late. Don’t make that mistake.

Final thoughts

Passing the CTA exams is absolutely achievable, but it requires more than just hard work. You must train like a tax professional, develop critical thinking, and treat each question as a real-world client scenario. If you approach it this way, you’ll not only pass – you’ll thrive.

Let’s start preparing smarter, not just harder. • Nitin Rabheru is the Senior Tax, Law, Ethics & Corporate Governance Lecturer for BPP

Our tips aren’t optional!

For the first-time ever at the last sitting all the optional paper pass rates were 40% and above! Here’s our tips for the September exams, with the help of BPP, to make sure you keep up the good work!

Advanced Financial Management (AFM)

June pass rate 46%

All AFM exams will have questions which have a focus on:

1. Syllabus section B (Advanced Investment appraisal), and

2. Syllabus section E (Treasury and Advanced Risk Management Techniques).

These syllabus areas are therefore high priority areas for your revision.

Q1: 50 marks

We would expect questions to cover at least two different syllabus areas. This emphasises the importance of having a good broad knowledge of the syllabus, and NOT targeting your final exam revision on a small number of numerical syllabus areas.

Questions are often mainly based on core syllabus areas such as project appraisal (domestic or overseas), business valuations and business/financial reorganisations – these areas often include cost of capital calculations. Risk management may also feature in a number of different ways such as value at risk, real options, interest rate or current hedging, and risk management (e.g. mapping).

is now even more important as 20% of the marks are awarded for professional skills. Make sure you aware what these skills are and that you are confident in your ability to integrate these into your answer to the technical requirements of a question.

UK Advanced Taxation (ATX)

June pass rate 49%

The exam will comprise one compulsory 50-mark question within Section A. The requirements will be detailed in the manager’s email marked

and evaluate the tax implications of various situations; numerical calculations will only be required to assist in producing an answer and no purely numerical questions will be set.

Since the introduction of the professional skills marks from the June 2023 sitting students now have more time to attempt each question than under earlier sittings. The ACCA has stated that the additional professional skills marks should not be considered as additional requirements but that the extra time they allow should be used for planning and thus to prepare a more comprehensive answer.

Q2-3: 25 marks each Areas that are commonly tested include:

• Risk management (currency or interest rate), including the functions and structure of a treasury department.

• Dividend policy and general financing issues.

• Real options (including limitations of the approach).

• Business reorganisation.

General advice: The examining team have emphasised that exams are designed to make question spotting extremely difficult for this paper, so it is important to have a broad understanding of the key aspects of each syllabus area. Pay as much attention to discussion areas as you do to numerical analysis in your final revision – remember that this paper is not a maths exam and that in all exam questions the examiner is interested in your ability to communicate well and to give sound, practical, management advice that relates to the scenario in the question. This

‘work to be carried out’, and there will be several exhibits containing further information. The answer will need to be prepared in a specific format as set out in the manager’s email, which will include mark allocations for the subrequirements. Due to the size of the question it is possible that the scenario could involve more than one client or a personal client in addition to a corporate client. The question will comprise 35 technical marks, five ethics marks and 10 professional skills marks. Each of the four professional skills will be tested.

Section B will comprise of two compulsory 25-mark questions. These will be in a more succinct, note-form style and will comprise 20 technical marks and five professional skills marks. A minimum of two of the three professional skills will be tested in these questions (not including communication).

The whole syllabus is examinable throughout the exam.

The exam will test candidates’ ability to analyse

Topics/ scenarios we would expect to see include:

• Personal income tax scenarios that could involve investing in a pension; investing in EIS, SEIS or VCTs, share schemes; employment income possibly with termination payments; a personal service company; property income or a takeover.

• Unincorporated business – particularly including loss reliefs, partnerships or basis period rules.

• A question focusing on overseas issues. This could be income tax, capital gains tax, inheritance tax or a corporate scenario.

• Capital gains tax versus inheritance tax including availability of reliefs.

• Corporate scenarios – likely to focus in more depth on intangibles; research and development; losses; corporate groups or consortia.

• Special corporate scenarios such as liquidation; purchase of own shares; close or investment companies.

• A business transformation scenario question such as selling a sole trade business, incorporation or, in a corporate context, the sale of shares versus the sale of trade and assets.

• Other common types of question/ calculation to expect are

• Reviewing a pre-prepared computation to spot, explain and correct errors.

• Calculations such as ‘tax saved through an action’, ‘after-tax proceeds’, ‘the value of a posttax inheritance’, ‘net spendable income’ or the ‘net of tax cost of something’.

Don’t forget that across the scenarios we typically expect to see VAT marks available. The partial exemption rules, VAT on land & buildings, a transfer of going concern, the capital goods scheme, overseas VAT transactions and registration/group registration/deregistration tend to be frequently examined.

There will also likely be a couple of marks for stamp duty points if you remember to think about it in your planning.

Finally, don’t forget your basic administration points are also likely to be examined: when does

the tax need to be paid, when does the return need to be filed, what if either of those are late?

Advanced Performance Management APM

June pass rate 40%

Q1 section A: Q1 of the APM exam will focus on a range of issues from syllabus section A (strategic planning and control), section B (performance measurement systems and design), and section C (strategic performance measurement).

Section A (50 marks) contains one question broken down into sub requirements. You will often be required to link a business’s mission to its performance objectives using the concept of CSFs and KPIs. You may well also have to critique and recommend improvements to performance reports and the balanced scorecard and/or information systems could well be tested in this context.

Assessing the performance of an organisation is likely to be tested and this could include benchmarking as a theme.

Financial performance measures (ROCE/ RI/EVA, etc.) are also likely to be examined in this context, but don’t neglect non-financial issues from syllabus section C such as quality management, value for management and reward systems.

Q2-3 section B: ACCA has said that one of two section B questions will come from syllabus section D (performance evaluation). This means you need to have sound knowledge of the balance scorecard, building block and performance pyramid models. You will also need to have a good working knowledge of activity based management (ABM) and value based management (VBM).

The other question can be sourced from a variety of syllabus areas including quality management, information reporting (e.g. big data, lean information), HR frameworks (e.g. reward & appraisal systems), transfer pricing and environmental management accounting.

General advice: APM is primarily a skills-based exam that tests the ability to apply knowledge to practical problems. This is now even more important as 20% of the marks are awarded for professional skills. Make sure you aware what these skills are and that you are confident in your ability to integrate these into your answer to the technical requirements of a question.

However, application of knowledge is only possible if you have a good range of technical skills in place. So, even though APM is not about reciting technical knowledge it is vital that you ensure that you have a good broad knowledge of core technical areas.

Advanced Audit & Assurance AAA

March pass rate 40%

Recent AAA exams have contained no real surprises, although you should be prepared for the look and feel of the embedded email and supporting exhibits and the split of both technical and professional skills marks.

Section A will comprise a case study, worth 50 marks – split into 40 technical marks and 10 professional skills marks – and will be set at the planning stage of the audit for a single company, a group of companies or potentially several audit clients.

Candidates will be provided with detailed

HEALTH WARNING

those charged with governance. The second section B question can be drawn from any other part of the syllabus, including sections A, B, C, D and F. Syllabus section G on current issues is unlikely to form the basis of a question on its own. Instead, it will be incorporated into the case study or either of the section B questions, depending on question content and the topical issues affecting the profession at the time of sitting the exam. Five professional marks will be available in each Section B question for demonstrating professional skill in analysis and evaluation, plus at least one of professional scepticism and judgement and commercial acumen.

These

tips should only be used in conjunction with proper study. We cannot guarantee that these topics will appear in the actual exam as we have not seen the exam papers. Examiners are not predictable so it is vital that all core syllabus areas are revised fully.

information, which will vary between examinations, but is likely to include extracts of financial information, strategic, operational, and other relevant information for a client, as well as extracts from audit working papers, which could include the results of analytical procedures. The date will be set as 1 July 20X5 unless you are told otherwise.

Candidates will be required to address a range of requirements, from syllabus sections A, B, C and D, thereby tackling a real-world situation where candidates may have to manage a range of issues simultaneously in relation to planning, risk assessment, evidence gathering and ethical and professional considerations.

Ten professional marks will be available in section A and will be awarded based on the demonstration of professional skill within a candidate’s answer, including communication, analysis and evaluation, professional scepticism and judgement, and commercial acumen.

Section B will contain two compulsory 25-mark questions, with each being predominately based on a short scenario. The marks will be split into 20 technical marks and five professional skills marks. There are no optional questions in AAA.

One question will always test syllabus section E, and candidates should therefore always be prepared to answer a question relating to completion, review and reporting. There are a number of formats this question could adopt, including but not limited to matters to be considered and evidence expected to be on file, a going concern assessment, the impact of subsequent events, evaluating identified misstatements and any corresponding effects on the auditor’s report. Candidates may also be asked to critique an auditor’s report or a report which is to be provided to management or

This is a technically demanding exam which tests auditing knowledge from both AA and AAA. All three exam questions will require you to apply this knowledge to the scenarios given: the professional marks will be awarded on the strength of your application of knowledge to the situation presented in each of the exhibits. Apart from poor auditing knowledge, lack of success usually comes from poor analytical skills, poor application, poor judgement and poor timekeeping.

This subject can also test topical issues that have been covered by the AAA examination team’s technical articles (e.g. quality management in September 2022, and the impact of data analytics in September/December 2020). You should be prepared for a requirement where you will not need to refer to an exhibit at all (in other words, a knowledge-based requirement), which was last seen in 2024. Then candidates were asked to ‘Discuss the challenges associated with the use of data analytics in performing external company audits’. This is most likely to be seen in Section B.

Check out the examining team’s two articles on quality management, two articles on planning questions and risk, plus another two articles that discuss recent developments in social, environmental and sustainability reporting. There are also ‘Topic explainer’ videos on areas such as quality management, audit procedures and prospective financial information (forecasts) that you may find of use.

There are two new syllabus learning outcomes for September’s exam: one on the ISA for auditing less complex entities (only applicable to the INT version) and an evaluation of evidence gathered as part of an assurance engagement (both versions), so you can expect to see something on these in the coming sittings. Also, remember the continuing focus on sustainability assurance following the issue of the IAASB’s exposure draft of ISSA 5000.

In addition to syllabus changes, IFRS 18 Presentation and disclosure in financial statements is now examinable so you should be prepared for the changes in terminology that this will require.

The examining team has advised that certain less frequently examined topics such as audit committees, money laundering, internal auditing and outsourcing could make an appearance, so you should make sure you have covered a good breadth of subjects in your revision.

• For all the September tips for AA, PM, TX, FR, FM, SBL, and SBR see www.pqmagazine.com

When experience counts

Louise Grant explains what

Over recent months we’ve seen a notable increase in the number of students achieving a first-time pass in the Internal Accounting Systems and Controls exam. This is a positive trend, and it has been encouraging to see learners grow in confidence and demonstrate a better understanding of the subject matter.

While there are likely several factors contributing to this improvement, one key insight that both I and my colleague Rachel Andrews, who works closely with students in this unit, have noticed is the impact of students’ prior experience, or lack thereof, in a finance role. In particular, students who come into the course without any hands-on background in accounting or finance often struggle to understand the fundamental business processes that underpin the systems we teach, especially those involving sales and purchases.

This gap in knowledge can create challenges when students are asked to assess and analyse internal accounting systems. It’s one thing to learn about controls, documentation and risk management in theory, but without a clear understanding of how a typical sales or purchasing process actually works students can find it difficult to apply that knowledge in a meaningful way. For example, recognising the importance of segregation of duties or understanding the purpose of a delivery note or purchase order becomes much harder if you’ve never seen these processes play out in a realworld context.

A solid grasp of how transactions flow through a business, who does what, when documents are created, how approvals happen and where checks and balances are applied, is essential to understanding what makes an accounting system strong, and where weaknesses or risks might lie. Without that foundation, students may resort to generic answers or struggle to identify appropriate internal controls when working on case studies or assessments.

We’ve found that helping students build this foundational knowledge early in the unit makes a significant difference. It gives them the tools to approach tasks with confidence and encourages more thoughtful, well-structured responses when evaluating systems. By focusing on these core business processes from the outset, students are better prepared to engage with the technical aspects of the unit and perform more strongly when it comes to assessment.

To address this, we’ve embedded practical, process-based learning into the early stages of the unit. One effective method has been using the Downton Instruments Limited staff list to demonstrate standard sales and purchase cycles. Mapping each step to a specific role helps students visualise how departments interact.

The sales process begins when Claire Hunter, the Accounts Receivable Supervisor, receives a customer purchase order. Claire

you need to know about the AAT level 4 internal controls exam

checks the customer’s creditworthiness and escalates high-value or unusual orders to Vikki Welch, the Financial Controller, for approval. Once authorised, Matt Stinton, the General Accounts Clerk, enters the order into the system, ensuring it matches the original purchase order. Orders are automatically numbered to prevent duplication, and Claire reviews them when needed.

Next, Usamah Siddiqui, the Warehouse Manager, uses a system-generated picking list to locate the goods. The items are packaged and dispatched with a delivery note, signed upon receipt. Claire confirms that the goods dispatched match the sales order before an invoice is raised.

Matt then prepares the sales invoice, reviewed by Claire. Each invoice must match the sales order and delivery note. Any discounts or nonstandard pricing require Vikki’s approval. Invoice numbers are automatically generated to ensure accuracy. When payment is received, Matt records it and allocates it to the correct account. Claire reviews any unmatched or short payments and investigates as needed. Segregation of duties ensures that no one person receives payments and reconciles accounts, helping prevent errors and fraud.

Claire also performs regular reconciliations using aged receivables reports and customer statements. Vikki Welch monitors trends and takes appropriate action when accounts become overdue, maintaining strong credit control.

The purchases process begins when Aled Hughes, the Accounts Payable Supervisor, raises a purchase order after confirming budget availability and supplier terms. All POs are authorised and recorded in sequence to ensure

completeness. When goods arrive, Usamah checks them against the delivery note and purchase order. Any discrepancies or damages are promptly reported and logged.

Once the supplier invoice is received, Matt performs a three-way match, comparing the invoice, PO and delivery note before entering it into the system. Only matched invoices proceed. Aled then reviews and approves the invoice, resolving issues and following approval limits to prevent unauthorised payments.

Vikki Welch authorises supplier payments once invoices are approved and due. For larger payments, dual approval is required to enhance control. Throughout the process, Claire supports by reviewing supplier statements and assisting with payables ledger reconciliation. Regular reconciliations help detect errors, omissions, or duplicate payments, ensuring accuracy in financial records.

Using a realistic company example with clearly defined staff roles at each stage of the process has made a big difference in helping students understand how accounting systems actually work day-to-day. Instead of just reading about procedures in theory, they can now see how different team members are involved at each step, whether it’s raising a purchase order, approving a sale, or reconciling payments. This practical approach makes it much easier for students, especially those without any finance experience, to follow the flow of transactions and understand where key controls are put in place. It also helps them spot potential risks or weaknesses in the system, which is a big part of what they’re assessed on.

• Louise Grant is a lecturer with First Intuition’s distance learning team

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It’s showtime!

Registration is now open for the seventh Accountex Summit Manchester. So what are you waiting for?

Last year’s event was hailed a huge success, welcoming double the number of attendees than two years previously.

Portfolio Director Caroline Hobden commented: “We love reuniting with our

northern community! We’re excited to deliver an even more exciting event with more features, exhibitors and exclusive content.”

Attendees will have the opportunity to meet 120-plus software and service providers,

including big names and first-time exhibitors including My VIP Tax Team, NatWest, Vista Insurance Brokers, Sign Up Software, Citation Cyber and Taxpad.

“For the past three years I have attended Accountex, and every year I discover a new software solution to enhance my business. This enables me to save time and increase my capacity to serve more clients,” said visitor Mandy Crossley, Director/Accountant for MC Accounting & Business Solutions.

The CPD accredited seminar programme is made up of 60+ industry leading speakers across four theatres. It will be packed with sessions on everything from Making Tax Digital updates from HMRC ahead of the 2026 deadline, to practice growth strategies and AI.

Visitor Rebecca Holloway, Associate Director at Harold Sharp Limited, commented: “If you want to see all the best speakers from the accounting industry, this is the place to be. There is just so much great content all in one day, you can’t afford to miss it.”

Along with the education programme and exhibitors’ stands, there will also be a post-show drinks event for visitors to network and relax after a busy day.

Accountex Summit Manchester is taking place at Manchester Central on 23 September 2025.

For further information and to book your free ticket click here. Use priority code ASM530 when booking your ticket.

Become an Intermediate Financial Accountant

Graduates, recently qualified and part qualified accountants get the support, guidance and recognition you need to set yourself apart in a competitive SME job market with:

• Designatory letters IFA AIPA

•

•

Five compliance pitfalls you must avoid

The IFA’s Tim Pinkney shares the most common compliance mistakes student accountants make and explains how to avoid them

Compliance might not sound exciting, but it’s foundational to your career. Getting it wrong doesn’t just mean a slap on the wrist; it can lead to disciplinary action, lost clients and a damaged reputation before you’ve even qualified.

While focusing on passing assessments, evolving regulations and learning the ropes of client work, it’s also critical to remember that compliance is not just for the fully qualified. In the eyes of regulators and professional bodies you are already part of the profession. That means your conduct, diligence and responsibilities matter right now.

1. Ignoring AML responsibilities

Many PQs assume AML is only the responsibility of managers or firm principals, but that’s not true.

You’re expected to understand how to carry out client due diligence (CDD), identify high-risk clients, and be alert to red flags, like unusual cash flows or vague business descriptions.

Make sure you’re familiar with your firm’s AML policies and ask questions if something doesn’t seem right.

2. Misclassifying transactions

You might think “that’s the software’s job”, but automation is only as smart as the person behind it.

A frequent trainee mistake is applying the wrong VAT rate or misclassifying a director’s loan as income. These aren’t just technical slipups, they can lead to compliance breaches and HMRC penalties.

Take the time to understand how classifications work, not just which buttons to press.

3. Poor record-keeping

Sloppy record-keeping can quickly become a compliance issue. Can you locate every client approval for adjustments? Do you maintain audit trails when amending entries? Are your working papers version-controlled? Treat

your documentation like a future auditor will examine it. Because one day they probably will.

4. Overlooking conduct rules PQs are bound by the same ethical codes as fully qualified members. Conflicts of interest, confidentiality breaches or inappropriate client relationships can all land you in serious trouble.

Read your professional body’s Code of Ethics. It’s not just theory; it’s your defence against real-world dilemmas.

5. Not keeping up with the regs

Accountancy is constantly evolving. New thresholds, digital reporting, ESG disclosures –and the list grows each year.

If you’re still referring to old tax bands or outdated IFRS interpretations you risk giving incorrect advice or making reporting errors. Subscribe to professional newsletters, use CPD platforms and stay informed.

At the IFA we know professionalism starts at the beginning of your career, and PQ accountants don’t get a ‘pass’ on compliance. Developing a strong compliance mindset now will protect your reputation and enhance your value to employers and clients.

Remember, though, that mastering compliance isn’t about working in fear. It’s about professionalism, credibility and earning trust. Embed it into your daily work, stay curious and ask when unsure. After all, clients don’t just want a smart accountant, they want one they can trust.

By building your compliance awareness now you are laying the foundation for a resilient and respected accounting career.

• Tim Pinkney is the Director of Professional Standards at the Institute of Financial Accountants

Dear Karen

Ask PQ’s very own agony aunt Karen Young when you need advice from a real expert. Email your dilemma to graham@ pqmagazine.com, and he will pass on the best ones to Karen THE DILEMMA

I’m the youngest in my workplace and feel like my input isn’t always recognised. How can I establish credibility and have a stronger presence?

KAREN’S RESPONSE

Being the youngest person in a professional environment comes with its own set of challenges. When you’re surrounded by more experienced colleagues, it’s easy to feel like your voice is being overshadowed. But credibility isn’t something that comes with age alone, it’s something you can build, and it starts with how you show up. Start by being intentional in how you prepare and participate. Whether it’s a team meeting, a project discussion or a one-to-one, take time to understand the context and come ready with insights or questions. When you demonstrate that you’ve done the thinking, people begin to take notice.

It also helps to lead with curiosity. Showing a willingness to listen and learn not only demonstrates maturity, but also a strong sense of engagement and drive. It shows you’re not just there to do the job, you’re invested in doing it well. Over time, this builds trust and positions you as someone who’s switched on and proactive.

Remember, your perspective matters. You bring a fresh lens, new ideas and a different way of thinking. That’s a strength, not a weakness. Confidence doesn’t mean having all the answers, it means backing yourself enough to share what you see. Keep showing up with intention, consistency and self-belief, and your presence will speak for itself, even when you’re the youngest in the room.

• Karen Young is a director at Hays. She is passionate about helping people to find the right job and companies the right person

UK gender pay gap narrows

The UK has the lowest gender pay gap, and has seen one of the biggest decreases in average gender pay gaps since mandatory reporting started in 2017, says PwC

The UK gender pay gap has seen one of the largest decreases since the introduction of pay gap reporting, signalling sustained efforts by organisations driving change, according to PwC analysis.

However, even with this year’s large decrease, data shows the longer-term pace of change remains slow, and it will take at least another 40 years for the pay gap to close completely.

The 2025 Gender Pay Gap Report shows a decrease of 0.6% in the mean hourly pay gap, narrowing from 11.8% to 11.2%,

In brief

AI changing grads’ choices

One in 10 (11%) graduates say they are changing their careers plans because of AI, according to a new study from Prospects.

While 14% of those surveyed said the rise of job automation had made them feel pessimistic about their job prospects, 43% already wanted to leave their current employer.

Most graduates were changing careers because they feared their job would become obsolete. Areas such as coding, graphic design, legal, data science, film and art were frequently mentioned, with creative jobs seen as the most at risk.

AI is good for the profession

Despite the mounting fears that AI will replace accountancy roles,

and a decrease of 0.5% for the median hourly pay gap, from 9.1% to 8.6%.

Andrew Curcio, global co-leader for reward & benefits at PwC, said: “The dial is finally shifting.

new data from AAT shows twothirds of people see AI tools as enhancing the accountancy profession.

The AAT survey found four in five accountants agree that automation will make their jobs easier, freeing them up from admin (78%) and enabling them to provide more strategic advice to clients (80%). And 64% of respondents believe AI tools will enhance efficiency and accuracy.

Interestingly, AAT also discovered that one in five accountants who have left the profession say they would return if automation could remove the more administrative aspects of the job.

Jump in AI-driven CV fraud

Employers are increasingly concerned about the rise in job

Whilst we’re seeing incremental change, this year’s data shows that when employers take deliberate action over the long term, progress follows although it will still take a long time for the pay gap to close.

“From reviewing pay structures, improving gender balance of senior roles, and transparent and inclusive promotion and recruitment processes, the organisations making the biggest strides are those embedding equity and consistency into their day-to-day decisions, not just their annual reports.”

applications using AI tools to embellish or falsify credentials.

A YouGov survey for Hedd found 67% of large companies have seen an increase in job application fraud. Nearly half (46%) revealed they had discovered at least one applicant who had claimed for a degree they did not have or had inflated their grades.

Smaller and medium-sized companies reported fewer cases of job application fraud (20% and 42% respectively), but experts say this might be because they are not as good as verifying qualifications.

Just over half (52%) of large companies check all academic credentials, compared with 37% of medium-sized firms. Just 29% of small firms actually check an applicant’s qualifications are real.

The PQ Book Club: books you should read

The Highflier Handbook: How to be seen and become a leader at work by Allen N. Weiner (Wiley, £23.99)

How do you stand out from the crowd? Well, if you want to be a high-flier then understanding what one looks like is the first step on the journey to becoming one.

Author Allen N Weiner very cleverly introduces himself at the start of the book, a bit like you would do if you were conducting a seminar. He explains Aristotle (that old Greek guy) knew how to sway a crowd, and Weiner is a big fan.

He uses a wonderful example of how someone used Aristotle’s teaching to write a unique obituary. In it the person who died is described as a SWAN –that is smart, worked hard and nice! You have logos, ethos and pathos right there.

Back to high flying. Weiner says competence and being a presence in the room are key skills. Once in that room you have to have the art of listening. When you get the chance to talk don’t go into a rat-a-tat-tat drum solo!

Weiner also talks about charisma, character and

charm. Are they essential for a high-flier – having a presence does help, obviously.

But the ‘c’ Weiner believes is the most important is competence. If you can show that under pressure (with a bit of charm) then you are going places. But don’t forget you need to master the formal and informal setting, too.

PQ rating: 4/5 I just hope someone one day describes me as a SWAN!

Still a notorious accountant

Chartered accountant Stephen Day can’t escape his 2021 crimes, and he now stars in BBC’s Fraud Squad series, for all the wrong reasons.

This is a man who was told by a judge he was guilty of ‘industrial-scale dishonesty’. At one point he held down three full-time jobs for the NHS, while also working for a vast range of clients.

On top of claiming £88,000 from the NHS for work he wasn’t doing, he was also stealing his client’s money to buy property, luxury goods and holidays.

Day was eventually caught after a six-year investigation and jailed for 11 years and five months. He pleaded guilty to 12 counts of fraud (to the value of £1.4m).

Despite being gay and in relationships with two men, Day also committed romance fraud with a woman, stealing £5,000 from her.

After shifting through two Transit vans of evidence investigators discovered Day had properties in Scotland, South Africa and Marbella.

The head of operations at NHS Counter Faud Agency, Richard Rippin, said at the time the lost money would have been enough to fund the annual salaries of three nurses.

• You can see the full story on BBC’s Fraud Squad, series 6 episode 9.

Reading old PQs will cost you!

So, how much is an old PQ magazine worth?

Remember it is and has always been free.

Well, we recently came across two magazines from 2020 that were selling on eBay for the heady price of £1.68 (or very best offer!).

Imagine our disappointment when we saw a single issue of Student Accountant from June/July 2008 up for sale for £1.50.

There were also lots of old copies of Accounting Technician up for grab too. One from Sept/Oct 2015 had the giddy price tag of £4.35, although it did not look as if the owner had looked after it.

Organic Finance

As promised, here’s that poem from Atual K. Shah’s wonderful new book Organic Finance. Remember you can save £8 by buying it direct from the publisher Routledge (click here).

Tree-Ky Business

Why is it a tree never moves? Why is it that it never goes to visit Other trees?

Does it not want to branch out and network?

Why does a tree never go into business? They have a ready market for their fruit. Birds could be charged for parking and overnight stay, On a hot day,

Trees could easily profit from selling their shade

It puzzles me why it is that trees, Have no ambition in life!

They seem to be over-content with their lot, And have no interest in exploiting their resources,

Or making something of their strengths. Rarely do trees present a statement about their performance, Or congratulate themselves for the quality of their product.

Do they really STAND for something? I have never seen a tree write a poem, Or sing a song.

Trees are lousy customers –They never buy anything!

In fact, they never visit our stores, And ignore our advertising!

Have you ever seen a tree drive a car? Or purchase an airline ticket? They never listen to orders, So we can’t give them any Jobs!

Tell me how have trees contributed to economic growth?

All they produce is more seeds and trees, As if there weren’t enough already!

Trees are practically useless, And harbour plenty of insects! They have no sense of urgency about anything, And their silence is so deafening! LET’S CHOP THEM ALL!

Where’s your calculator?

If you have ever met the editor of PQ magazine, Graham Hambly, you will know he has a bee in his bonnet about accountants who don’t carry a calculator with them at all times. Something must have happened to him early in his career to make him that way.

So, you can image his delight when he recently travelled to see the e-Careers team at their Langley HQ. Present was the multi-award-winning tutor Karen Groves, and when he asked his question she immediately produced not one but two calculators from her bag! “Now that is what I call a proper accountant,” he was heard to say.

A discussion on what makes a good calculator ensued, and the best ones have buttons that aren’t too small, apparently! We left them to it…

Multiple arrests in phishing attack investigations

Thirteen people have been arrested in Romania on suspicion of making fraudulent tax repayment claims using personal data that was stolen in sophisticated phishing attacks. Criminal investigators from HMRC joined more than 100 Romanian police officers to arrest the men and women in the counties of Ilfov, Giurgiu and Calarasi.

A joint investigation team was established earlier this year and brought together Romanian Prosecutors, HMRC and the Crown Prosecution Service (CPS).

It’s suspected that organised criminal gangs have stolen data and used it to submit fraudulent PAYE claims, as well as VAT repayments and Child Benefit payments. The arrests are part of ongoing investigations linked to phishing attacks.

The men and women, aged between 23 and 53, were arrested by Romanian Police’s Economic Crimes Investigation Directorate on suspicion of computer fraud, money laundering and illegal access to a computer system.

A 38-year-old man was also arrested in Preston in another investigation linked to the phishing attacks. HMRC officers who also seized electronic devices.