Weekly Round-Up: 29th July- 2nd August
Accountancy Age
Accountancy Age is the accountancy profession's leading source of news and analysis.
Ahead of the weekend, we've compiled some of the most noteworthy stories from this week - including some we missed!
Tax and Regulation
This week’s financial news brings to light key developments in tax credits, regulatory compliance, and audit quality. Software companies are navigating the complexities of R&D tax credit claims, emphasising the need for precise documentation and expert guidance.
Concurrently, recent changes in R&D tax relief regulations aim to curb fraud while increasing incentives for genuine innovation, reflecting the government's commitment to fostering research and development.
HM Revenue & Customs ’s latest annual report likely discusses advancements in tax compliance, customer service, and future initiatives to enhance the tax system's efficiency.
Meanwhile, the Financial Reporting Council (FRC) reports improved audit quality among the largest firms, though it highlights the need for urgent improvements at BDO and Forvis Mazars Group . The FRC underscores the strategic importance of maintaining high audit standards and outlines ongoing supervisory measures.
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Audit and Governance
KPMG has integrated AI into its smart audit platform, KPMG Clara, enhancing audit efficiency and accuracy with generative AI capabilities. This move signifies a major step forward in leveraging technology for improved audit practices.
In legislative developments, the Draft Audit Reform and Corporate Governance Bill represents landmark legislation aimed at overhauling corporate governance and audit standards. This bill is expected to bring significant changes, enhancing transparency and accountability in financial reporting.
Meanwhile, internal audit teams are grappling with a critical capacity crunch. A report from AuditBoard highlights the growing disconnect between the escalating demands on internal audit functions and their limited capacity to address emerging risks. Internal audit teams are under pressure to increase their involvement in risk-related activities, with a focus on Integrated Risk Management (IRM) and Enterprise Risk Management (ERM).
However, a significant maturity gap in risk management practices presents both challenges and opportunities for improvement.
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Wellbeing and community
The accounting profession faces a mental health emergency, with increasing stress and burnout among professionals. Addressing this crisis requires systematic changes, supportive work environments, and mental health resources.
In a positive turn, a charity cricket event organised by AJ Chambers ? raised ￡13,150 for Havens Hospices. The inaugural annual event, saw the accounting team lose by a single run to the team of lawyers on July 17th. Accountancy Age was a key sponsor of the event.
Meanwhile, Accountancy Age continued it's #35und35 video series, interviewing young professionals about how they stay on top of regulatory updates to ensure compliance and adaptability in the ever-evolving financial landscape.
Industry trends and insights
The UK’s The Pensions Regulator (TPR) has issued new guidance for superfunds, introducing significant changes to capital release rules and scheme transfers. This update aims to inject dynamism into the superfunds market while ensuring a high probability of meeting members’ benefits.
Meanwhile, global confidence among accountants rose in Q2 2024, despite a significant drop in sentiment in the US. The rise in confidence globally suggests resilience in the accounting sector, driven by economic recovery in various regions outside the US.
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