Did you know that an auditor is not required to spot fraud? Do you rely on one of big four accountancy firms for information? There is not much choice; KPMG, Deliotte, PwC and EY carry out 97% of large company audits.
When a company has its accounts audited they should be a protection for the shareholders and investors but if the auditor is solely reliant on the company and its Directors for information; then who can you trust?
The Competition and Markets Authority (CMA) is investigating the big four accountancy firms, it has proposed that they split their audit business off from the other parts of their businesses due to conflicts of interest. MP’s are even demanding the break-up of the big four.
If you rely on company accounts – think about getting a legal view early on. You will have someone looking out for your interests. Our commercial team can help, and our litigators deal with company disputes, such as breaches of duties by Directors and fraud. The warning signs may not be in the audited accounts. We use experts who can give you an independent view; prevention is better than cure. You can call us free on 0800 037 1625 to speak to one of commercial or litigation lawyers.