Accountancy news

• Australia’s leading super funds halt future contracts with PwC amid tax scandal fallout

  09-06-2023 17:00 via theguardian.com
  
  AustralianSuper, Australian Retirement Trust, Hesta and Aware Super say they won’t enter into new contracts with the firmGet our morning and afternoon news emails, free app or daily news podcastAustralia’s biggest superannuation funds have either frozen, or are reviewing, future work contracts with PricewaterhouseCoopers Australia, as the fallout from the tax leaks scandal proves costly for the embattled firm.Four of the country’s biggest funds, AustralianSuper, Australian Reti
  
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• PwC Australia names former partners it says misused confidential information in tax scandal

  05-06-2023 09:57 via theguardian.com
  
  Senator Deborah O’Neill has accused the firm of using the ‘cloak of the Senate’, and said names of those involved should be released publiclyGet our morning and afternoon news emails, free app or daily news podcastPricewaterhouseCoopers Australia has disclosed the names of four former partners it says are responsible for confidentiality breaches to a parliamentary committee amid mounting pressure in the tax leaks scandal.The embattled professional services firm has also provide
  
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• The Big Four firms are incapable of unwinding their own deep-seated conflicts | Ian Gow and Stuart Kells

  03-06-2023 22:00 via theguardian.com
  
  By rejecting demergers on their own terms, the Four have chosen uncontrolled and possibly chaotic break-ups on someone else’s terms and clockThe Big Four – PricewaterhouseCoopers, EY, Deloitte, KPMG – are the global behemoths of the professional services industry. With nearly 1.5 million staff and US$190bn in annual revenue, they dominate markets for accounting, auditing and tax-related advice. They are huge in other businesses too, including the provision of A$2bn of outsourci
  
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• Scrutiny on PwC’s Australian business likely to extend to global operations

  02-06-2023 17:00 via theguardian.com
  
  Experts say business model of consulting organisations rife with conflicts of interest amid renewed debate about separating auditing from adviceWhen PricewaterhouseCoopers’ Australian business issued an expansive apology over the tax leaks scandal, it may have hoped for an opportunity to start rebuilding its reputation.Instead, it endured one of the most difficult weeks of the self-inflicted crisis, when not only the structure of its own business was scrutinised, but that of its global ope
  
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• PwC Australia scandal: what actually happened and will it be fatal for the advisory firm?

  31-05-2023 17:00 via theguardian.com
  
  The Australian affiliate of PricewaterhouseCoopers is subject to a police investigation in a crisis that could have global implicationsGet our morning and afternoon news emails, free app or daily news podcastPricewaterhouseCoopers’ public slogan is to “build trust in society and solve important problems”.But its embattled Australian affiliate breached that trust when it misused confidential government tax information for commercial gain, creating its own crisis that threatens t
  
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• Treasury referred PwC to AFP after ‘clearly disturbing’ emails revealed, Senate hears

  30-05-2023 10:31 via theguardian.com
  
  Senator Barbara Pocock has requested PwC release the names of partners understood to be involved, saying she is ‘confident they will reach the public’Get our morning and afternoon news emails, free app or daily news podcastPwC emails referring to tax policy information that was “supposed to be secret” are “clearly disturbing”, Treasury secretary, Steven Kennedy, has told a parliamentary committee.Kennedy made that remark on Tuesday, revealing that 144 pages of
  
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• PwC tax scandal referred to Australian federal police for criminal investigation

  24-05-2023 11:48 via theguardian.com
  
  Treasury statement alleges firm’s former head of international tax, Peter Collins, ‘improperly used confidential Commonwealth information’Get our morning and afternoon news emails, free app or daily news podcastThe federal treasury has referred the PwC tax scandal, involving former partner Peter Collins, to the Australian federal police for a criminal investigation.Treasury department secretary Steven Kennedy issued a statement late on Wednesday alleging Collins, PwC’s fo
  
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• Overheard during a crisis meeting at PwC | Fiona Katauskas

  23-05-2023 07:07 via theguardian.com
  
  Is that confidential or not? Continue reading...
  
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• Should we trust private companies with government secrets? – podcast

  21-05-2023 17:00 via theguardian.com
  
  Consultants at PricewaterhouseCoopers used government secrets to help clients in Australia and the US avoid tax – a scandal that has forced resignations and threatens contracts worth hundreds of millions. The federal government has been warned to reconsider its relationship with the consulting industry, which rakes in billions from the government each year.Reporter Henry Belot on how a series of secretive emails marked “for your eyes only” exposed this scandal, and the governme
  
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• Why does Australia rely on consulting firms such as PwC and not on its own public servants? | Clancy Moore

  18-05-2023 05:20 via theguardian.com
  
  The interests of such firms are not always aligned with the public interest. This makes them a poor substitute for Treasury officialsFollow our Australia news live blog for the latest updatesGet our morning and afternoon news emails, free app or daily news podcastAustralia is known for punching above its weight. And when it comes to spending on consulting firms, the government has done just that.Australia’s consultancy spend is among the highest in the world, and double that of comparable
  
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• PwC internal review of tax leak ‘continues the cover-up’, Australian senator says

  17-05-2023 07:18 via theguardian.com
  
  Labor’s Deborah O’Neill says it’s not enough for company to ‘share summary of key recommendations’, amid calls for AFP investigationFollow our Australia news live blog for the latest updatesGet our morning and afternoon news emails, free app or daily news podcastThe scandal engulfing global consulting giant PwC has deepened, with an Australian senator accusing its proposed internal inquiry of “continuing a cover-up” amid calls by a Greens senator for an
  
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• ‘Disgraceful breach of trust’: how PwC, one of the world’s biggest accountancy firms, became mired in a tax scandal

  12-05-2023 17:00 via theguardian.com
  
  PricewaterhouseCoopers used government secrets to help clients in Australia and the US avoid tax – a scandal that has forced resignations and threatens contracts worth hundreds of millions”Get our morning and afternoon news emails, free app or daily news podcast“In the depths of winter 2015, an Australian tax specialist adopted the language of a spy. “For your eyes only,” he wrote, while emailing government secrets to colleagues who would later use them to help clie
  
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• Labor senator accuses PwC of ‘deception and betrayal’ in misuse of Treasury information

  09-05-2023 17:00 via theguardian.com
  
  Deborah O’Neill has also raised concerns that other consultancy firms may have engaged in similar practices without being detectedGet our morning and afternoon news emails, free app or daily news podcastAn Australian senator has delivered a scathing rebuke of the consultancy firm PwC, arguing its misuse of Treasury information was a betrayal of professional ethics and standards while suggesting more resignations may be necessary.On Monday night, the chief executive of PwC Australia, Tom Se
  
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• Deloitte under investigation over audit for retailer Joules

  09-05-2023 14:57 via theguardian.com
  
  Financial Reporting Council to look at group’s 2021 accounts, a year before it went into administrationOne of the UK’s biggest advisory firms, Deloitte, is under investigation by the UK’s accountancy watchdog in relation to its audit of fashion group Joules’ 2021 accounts.Joules, best known for its colourful wellies and waterproof coats, called in administrators in November, putting 1,600 jobs and the future of its 132 shops at risk, after failing to secure emergency fund
  
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• Covid era graduates struggle with communication, say Deloitte and PwC

  02-05-2023 13:45 via theguardian.com
  
  Accounting firms offer extra training on face-to-face presentations and in-person meetingsTwo of the UK’s big four accounting firms are giving extra training to younger recruits after finding that those who spent large parts of their education remote working during Covid lockdowns struggled with communication and teamwork tasks.Deloitte and PwC said they were offering newer recruits training on skills that may have been neglected during the pandemic such as giving face-to-face presentation
  
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• The Guardian view on management consultants: overused, underperforming | Editorial

  17-04-2023 20:13 via theguardian.com
  
  The omnipresence of consultancies is harming public services, while creating lucrative opportunities for private profitShortly after Margaret Thatcher took power, her environment secretary, Michael Heseltine, wrote: “The management ethos must run right through our national life – private and public companies, civil service, nationalised industries, local government, the National Health Service.” Since 1980, ministers have stayed true to his word. Britain is the outsourcing capi
  
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• EY tells UK staff to expect cuts after breakup failure

  13-04-2023 12:20 via theguardian.com
  
  ‘Embarrassed’ bosses at accounting firm sound warning as global costs of failed split reach $600mBusiness live – latest updatesEY has reportedly told UK staff to brace for a wave of cuts, after the business spent $600m (£480m) globally preparing for a now-scrapped breakup of its operations.Bosses at the accounting firm told staff during a phone call on Wednesday that it felt like a “low point” for the business, and admitted they were “disappointed and em
  
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• EY plan to break up consultancy and audit divisions blocked by US office

  11-04-2023 20:44 via theguardian.com
  
  Accountancy firm confirms work has stopped on radical scheme after internal concerns about structureEY has scrapped plans for a radical breakup of its global operations after internal disputes over the potential structure of the new businesses.The company started laying the groundwork for separating its audit and advisory businesses – under the codename Project Everest – last year, as the big four accounting firms faced mounting criticism about conflicts of interest between the two d
  
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• Deloitte CEO in thinly veiled criticism of EY after rival’s split plans thrown into chaos

  09-03-2023 21:13 via theguardian.com
  
  Joe Ucuzoglu posts 20-minute video to Deloitte’s public websiteDeloitte’s chief executive has launched a thinly veiled criticism of rival EY after its controversial plans to split the business into two were thrown into turmoil.EY initially announced plans for a radical breakup of its global operations last year, that would separate its audit and advisory businesses. It came as the big four accounting giants faced criticism over potential conflicts of interest, given they are meant to
  
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• Jeremy Hunt preparing to use budget to reinvigorate investment with tax relief

  08-03-2023 12:35 via theguardian.com
  
  Chancellor mulls new measures to boost investment and repel fear over UK’s faltering status as a global business hubJeremy Hunt is preparing to use next week’s budget to repel mounting criticism of Britain’s faltering status as a global hub for business, including new tax reliefs to encourage companies to invest.Business leaders and some Conservative MPs have called on the chancellor to soften the planned rise in corporation tax from 19% to 25% to allay growing fears over the h
  
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• Jeremy Hunt may give UK firms tax relief on capital investment

  08-03-2023 12:35 via theguardian.com
  
  Chancellor, who announces budget on 15 March, considers move to offset rise in corporation taxJeremy Hunt is considering giving UK companies tax relief on capital investment at next week’s budget to offset a sharp rise in corporation tax from April and the end of the government’s £25bn “super-deduction” regime.Business leaders and some Conservative MPs have called on the chancellor to soften the planned rise in corporation tax from 19% to 25% to allay growing fears
  
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• PwC fined for Babcock audit failings including faking evidence

  08-03-2023 11:45 via theguardian.com
  
  UK regulator says breaches found in ‘every area’ looked at in relation to audit of engineering firm’s accountsThe consultancy group PwC has been hit with a £7.5m fine over a string of serious breaches while auditing the engineering company Babcock’s accounts, including faking evidence related to a sensitive government contract.The accounting regulator, the Financial Reporting Council, said breaches were found in “every area” it had investigated in relati
  
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• PwC fined for Babcock audit failings including creating false record

  08-03-2023 11:45 via theguardian.com
  
  UK regulator says breaches found in ‘every area’ looked at in relation to audit of engineering firm’s accountsThe consultancy group PwC has been hit with a £7.5m fine over a string of serious breaches while auditing the engineering company Babcock’s accounts, including creating a false record of documents reviewed for a sensitive government contract.The accounting regulator, the Financial Reporting Council, said breaches were found in “every area” it had
  
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• UK ministers promised to kick the consultant habit but they can’t: they’re addicted – and we pay the price | Mariana Mazzucato and Rosie Collington

  28-02-2023 12:47 via theguardian.com
  
  While the axe falls on vital services across the country, a dependent Whitehall is still giving private consultants a blank chequeAs real-terms pay in Britain continues to fall, and cuts to vital services, including in the justice system and housing, endure, there appears to be a one-line item in the government’s budget that is immune to the cost of living crisis: private-sector consultants.The Guardian recently revealed that UK ministers had quietly dropped controls on spending on consult
  
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• China instructs state firms to phase out big four auditors

  22-02-2023 14:17 via theguardian.com
  
  Firms urged to allow contracts with Deloitte, KPMG, EY and PwC to expireThe Chinese government has reportedly instructed state-owned companies to phase out contracts with the big four accounting including KPMG and EY, as authorities try to address security concerns and curb the influence of western-linked auditors.China’s finance ministry is among the government entities that has issued informal guidance last month, urging state-owned corporations to let contracts with Deloitte, KPMG, EY a
  
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• Darktrace hires EY to review finances after short-seller attack

  20-02-2023 11:47 via theguardian.com
  
  Cybersecurity company defends against criticism from hedge fund Quintessential and othersDarktrace has hired EY to conduct an independent review of its finances as it tries to defend itself against a hedge fund that alleges questionable marketing, sales and accounting practices at the cybersecurity company.The FTSE 250 company said the accountancy firm EY would provide “additional independent third-party review of its key financial processes and controls”, in a statement to the stock
  
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• KPMG settles £1.3bn lawsuit from Carillion creditors over alleged negligence

  17-02-2023 19:25 via theguardian.com
  
  Collapse of outsourcer in 2018 with debts of £7bn came after annual accounts were approved by KPMG KPMG has settled a £1.3bn lawsuit brought by Carillion’s liquidators, who claimed the auditor was negligent and missed serious red flags in the outsourcing firm’s accounts ahead of its disastrous collapse in 2018.The lawsuit – which related to audits of Carillion accounts between 2014 and 2016 – had been launched by Britain’s official receiver, which is att
  
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• KPMG pays £1.3bn to settle negligent auditing claim by Carillion creditors

  17-02-2023 19:25 via theguardian.com
  
  Collapse of outsourcer in 2018 with debts of £7bn came after annual accounts were approved by KPMG KPMG has settled a £1.3bn lawsuit brought by Carillion’s liquidators, who claimed the auditor was negligent and missed serious red flags in the outsourcing firm’s accounts ahead of its disastrous collapse in 2018.The lawsuit – which related to audits of Carillion accounts between 2014 and 2016 – had been launched by Britain’s official receiver, which is att
  
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• UK firms less likely to borrow than at any time since financial crash

  03-01-2023 01:01 via theguardian.com
  Demand for credit is waning among UK’s leading companies, according to accountancy firm DeloitteThe UK’s leading companies are less inclined to borrow now than at any point since the financial crisis of 2008, a survey of directors has found.Demand for credit is flagging among chief financial officers, with barely a quarter of those polled at FTSE 100 and FTSE 250 companies expecting to increase borrowing in the next year. Continue reading...
  
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• £1.1bn in fees, 3.1m hours, 14 years: the UK cost of winding up Lehman Brothers

  28-12-2022 07:00 via theguardian.com
  PwC, administrator of Lehman’s London arm since bank’s failure in 2008, secures three more years to finish processAdministrators will spend at least three more years winding up the London-based arm of Lehman Brothers, swelling the almost £1.1bn in fees that PwC has already raked in since the bank’s calamitous collapse in 2008.PwC has secured court approval to extend the administration process for the investment bank’s European hub to 2025, given the “complexit
  
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• Deloitte fined £900,000 by watchdog over SIG audit failures

  22-12-2022 10:48 via theguardian.com
  Financial sanctions relate to audit of building materials firm’s statements for years 2015 and 2016Deloitte has been fined more than £900,000 by the accounting watchdog after failures in its audit of the building materials firm SIG.The Financial Reporting Council (FRC) also handed a fine of £36,250 to Simon Manning, who was the audit engagement partner working on the account. Continue reading...
  
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• Twitter’s CEO post is a non-job if Elon Musk can’t vacate it | Nils Pratley

  21-12-2022 19:29 via theguardian.com
  Tesla shareholders hoping for the full attention of their distracted CEO are likely to be disappointed Management by Twitter poll is such a silly idea that it remains hard to believe Elon Musk was being sincere when he invited the site’s users to determine if he should continue as chief executive. One suspects he had already decided to hire an executive to front the business – which is what, note, he told a Delaware court he would do several weeks ago. The poll merely created a buzz.
  
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• Exam cheating at UK audit firms uncovered by watchdog

  21-12-2022 18:13 via theguardian.com
  Financial Reporting Council urges ‘vigilance’ after cheating in tests underpinning professional qualifications found at top auditors Cheating in professional exams is still a “live” issue at the UK’s biggest audit firms, the accountancy watchdog warned. A string of multi-million dollar fines have already been issued to large auditing and accounting firms around the world over allegations of cheating in tests which underpin professional qualifications. Continue readi
  
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• Binance auditor withdraws from working with crypto company

  16-12-2022 16:46 via theguardian.com
  World’s largest cryptocurrency exchange, which has been hit by $6bn of withdrawals this week, seeks replacement for MazarsBinance, the world’s largest cryptocurrency exchange, has revealed that the auditor Mazars has stopped working with it.The exchange, which has been hit by $6bn of withdrawals this week, said in a statement that the French auditing firm had “temporarily” paused work with all its crypto clients including Binance.Continue reading...
  
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• British Steel auditor Mazars resigns over fee disagreement

  12-10-2022 11:58 via theguardian.com
  Move comes only days after manufacturer reportedly asked government for financial support British Steel’s auditor has resigned, days after the manufacturer reportedly asked the government for financial support to save its operations, including the Scunthorpe steelworks.The accounting firm Mazars said the troubled Chinese-owned steelmaker had balked at the fees it quoted to sign off the company’s books for this year and was refusing to compensate it for difficulties with the previous
  
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• Average income of Deloitte’s partners in UK and Switzerland tops £1m

  30-09-2022 01:01 via theguardian.com
  Each will receive distributable profit of £1,058,000 in year to end of May – 33 times UK’s average annual payPartners at Deloitte in the UK and Switzerland will receive an average income of more than £1m each for the second year in a row, after the accountancy firm enjoyed another successful year.Each partner will receive an average distributable profit of £1,058,000 in the year to the end of May, about 33 times the UK’s average annual pay. This is the first t
  
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• Sanjeev Gupta’s auditor quit over ‘lack of information’

  20-09-2022 17:35 via theguardian.com
  King & King cites concerns over whether metals businesses could remain solventThe tiny audit firm responsible for signing off the accounts of several of Sanjeev Gupta’s metals companies has said it quit because it could not obtain enough information about a fraud investigation or whether they had enough cash to survive.King & King said there was a “lack of sufficient information and evidence” on several issues and raised concerns over whether the businesses could remain
  
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• Auditor resigns from Sanjeev Gupta’s UK steel companies

  15-09-2022 20:06 via theguardian.com
  Turmoil continues at businessman’s empire as King & King is investigated by accounting regulatorThe auditor of many of the companies in Sanjeev Gupta’s network of metals companies has resigned from at least five of them, amid an investigation of its work by UK regulators.London-based King & King has resigned as auditor of the companies in Gupta’s GFG Alliance, a sprawling group of firms under his control. Continue reading...
  
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• Tim Sarson, KPMG UK head of tax policy, discusses ‘levelling up’ and PM Liz Truss’ tax cuts

  15-09-2022 11:42
  In a conversation with Accountancy Age, Tim Sarson, head of tax at KPMG, discusses using the tax system to support the leveling up of infrastructure and living standards in the UK, and the new prime ministers tax cut promises.Do you agree with Prime Minister Liz Truss’ proposals to make tax cuts?
  Most of the proposals affect businesses in one way or another. The reversal of the health and social care levy, for example, impacts individuals. But ultimately, it is something that is administer
  
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• Q&A: KPMG head of tax policy discusses ‘levelling up’ and Truss’ tax cuts

  15-09-2022 11:42
  In a conversation with Accountancy Age, Tim Sarson, head of tax at KPMG, discusses using the tax system to support the leveling up of infrastructure and living standards in the UK, and the new prime ministers tax cut promises.Do you agree with Prime Minister Liz Truss’ proposals to make tax cuts?
  Most of the proposals affect businesses in one way or another. The reversal of the health and social care levy, for example, impacts individuals. But ultimately, it is something that is administer
  
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• IFAC publishes action plan to tackle economic crime and corruption

  12-09-2022 10:47
  The International Federation of Accountants (IFAC) has published an action plan to help the accountancy profession tackle economic crime and corruption.
  The Action Plan for Fighting Corruption and Economic Crime sets out more than 30 specific actions for IFAC and the accountancy profession related to education, evidence-based policy, global standards, partnership, and thought leadership.
  The global accountancy profession is a “central ally” in the fight against corruption and economi
  
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• Ernst & Young splits into separate audit and advisory businesses

  08-09-2022 20:25 via theguardian.com
  Break up of ‘big four’ accountancy firm was voted for by partners and is expected to begin this yearBosses at “big four” accountancy firm Ernst & Young have decided to move ahead with a radical break-up plan to separate its audit and advisory businesses, which will now be put to a vote by its 13,000 partners.Voting at EY, which has offices in more than 150 countries and employs 312,000 people globally, is expected to begin on a country-by-country basis towards the end
  
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• Will new PM Liz Truss deliver on her tax cut promises, experts ask

  05-09-2022 17:55
  Liz Truss is set to become the next UK prime minister, but business leaders and tax experts are questioning whether she will deliver on her promise to cut taxes.
  The new prime minister has promised to slash taxes for British SMEs and said her government would “stop putting so much red tape, so much tax on business”.
  As a “pro business” prime minister is pledging tax cuts she claims will cost £38 billion annually, including a cancellation of the recent national insur
  
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• PwC sued by employee who lost half his skull after ‘pub golf’ outing

  22-08-2022 17:44 via theguardian.com
  
  Auditing firm worker says he faced ‘heavy pressure’ to attend after-work drinking event in 2019The auditing firm PricewaterhouseCoopers (PwC) is being sued by a UK employee who lost half of his skull after taking part in a “pub golf” work event that involved excessive drinking.The employee, 28-year-old Michael Brockie, filed a personal injury claim against PwC for alleged negligence, having suffered a brain injury and been put into an induced coma in early 2019. Continue
  
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• Accountants tell clients to not “panic” despite predictions of an “unavoidable” recession

  19-08-2022 09:00
  
  Accountants across the UK are urging clients not to “panic”, despite new data from the Office for National Statistics reinforcing the threat of an impending recession.
  On August 12, the ONS announced a 0.1% drop in quarterly GDP figures, cementing fears of an impending recession later this year.
  The Institute of Chartered Accountants in England and Wales (ICAEW) has predicted that a winter recession is “unavoidable”, but accountants are aware there is a risk of the sector
  
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• PwC raises UK partners’ pay to more than £1m for first time

  18-08-2022 12:28 via theguardian.com
  
  Increase in average payouts for accounting firm’s 995 top employees linked to consulting services boomPartners at the accounting firm PwC UK have been handed more than £1m each for the first time, after a double-digit rise in revenues across the business.The firm said on Thursday it had increased average payouts for its 995 top-level employees to £920,000 for the 12 months to June, up 12% from a year earlier, after a jump in profits linked in part to higher income from its cons
  
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• PwC says graduates no longer need at least 2:1 degree to work at firm

  15-08-2022 13:03 via theguardian.com
  
  Accountancy company says move is about trying to attract job starters from broader range of backgroundsPwC has removed a requirement that new employees achieve a minimum of a 2:1 at university, acknowledging that talent and potential is “determined by more than academic grades”.The accounting company, a leading employer of UK graduates, said it was also removing the requirement from its internship and placement programmes. Continue reading...
  
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• PwC hit with multi-million pound sanctions over BT audits

  08-08-2022 15:42
  
  Big Four firm PwC has been hit with fines by the Financial Reporting Council (FRC) over its audit work for BT.
  The audit giant has received a penalty of £1.7m, and audit partner Richard Hughes has also been handed a £42,000 fine, after failing to “adequately document” the audit work across BT Italy’s debt adjustments.
  Both PwC and Hughes admitted breaches of the rules in relation to the audits. The original penalties were reduced from £2.5m for PwC and £
  
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