The Importance of Accountants in an Era of Prevalent Auditor Incompetence

Whilst auditors have always maintained the view that their duty isn’t the prevention or detection of fraud, it’s fair to say that the sheer level of incompetence on display recently is unacceptable. Corporate collapses of construction company Carillion and German payment processor Wirecard to the tune of £1.3 billion and £1.9 billion respectively have led to an outcry from the public for large scale reforms to the audit sector. Shareholders have lost millions through plummeting share prices which eradicated the value of their shares whilst other stakeholders such as employees and lenders suffered heavily too.

Hiring an auditor was a means of comfort for shareholders but the string of enterprise failures in recent times has eroded confidence in the profession. Preventing the inherent conflict of interest between assurance and advisory is crucial but the problem is more deep-rooted and entails the culture circumscribing audit. Partners are famously infamous for delegating excessive work to juniors who lack the professional scepticism and experience required to identify even the most indicators of fraud. Companies and unincorporated businesses which don’t qualify, or don’t conduct, an audit should find this even more alarming since a greater degree of trust is required in the accountant.

But what does this mean for accountants?

Responsibility over preparation of financial statements as well as handling the entirety of the bookkeeping system with awareness that hoodwinking auditors is increasingly possible can have catastrophic consequences for clients who aren’t well versed with the world of finance. Manipulation can involve artificially inflating sales to give an appearance of heightened profits in order to charge clients greater fees or, more abashedly, failing to carry out any of the work whilst charging astronomical fees to fund a lavish lifestyle. Clients who are too involved with their own work and fail to engage with their accountant on a regular basis can be particularly susceptible to the latter.

At Cheylesmore Accountants, the success and failures of our clients are our own and we strive to maintain the highest standards of competence, confidentiality and integrity. Our suite of software tools provides clients with real time access and deeper insights to the progress of their accounts. We pride ourselves on transparency to ensure our clients are always updated on the existing state of the affairs with weekly interactions portraying our desire to become involved with the heart of the business. Our eagle eyed accountants are persistent in their drive to maintain perfection and ensure you remain stress free. So, when accounts submission season comes knocking and other accountants demand ten different kinds of paperwork in a short span of time setting you into panic mode, our clients rest assured knowing their accounts have been filed well before deadlines. Oh, and did we mention that we’re paperless as well, saving you significant sums in storage costs.

We’re determined to provide you with the best and are confident you’ll immediately notice the difference between us and the conventional accountants operating legacy systems. So, if you’re tired of the routine and laborious process every year, have no idea what all those figures in the financial statements mean or are just looking for an innovative service tailored to your business’s needs, give us a call or book a consultation via our website.