Category Archives: FInance

Business, Business News, FInance, Finance News

Milestone Success: Swansea Building Society’s Centenary Celebrated with Financial Triumph

In its 100th year, Swansea Building Society stands as a testament to success, achieving historic growth in mortgages and savings balances, complemented by record profits. The institution’s ability to attain double-digit growth in total assets, mortgages, savings, and capital, even in a challenging economic environment, underscores its financial prowess and strategic resilience.

For the fiscal year to December 31, 2023, Swansea Building Society celebrated significant financial milestones, witnessing a 15% growth in total assets fuelled by a 16% increase in savings and a 15% rise in mortgages. Total assets soared to £607 million, savings balances reached £565.5 million, and mortgage balances expanded to £477.8 million. The Society’s impressive mortgage growth was propelled by setting another record with gross mortgage completions hitting £120.1 million, surpassing the previous highest set in 2021.

The Society’s growth was supported by record profits before tax of £6.2 million, beating the previous record of £5.4 million achieved in 2022. This increased the Society’s capital reserves to £39.8 million. This is vitally important to the Society, as it provides greater reserves to support members achieve their financial goals.

The Society remains one of the few financial institutions in the UK that receives no wholesale funding or support from the Bank of England in the form of cheap funding. Its balance sheet is funded entirely by customer savings balances and its own capital reserves built up from retained profits over many years.

Alun Williams, Chief Executive of Swansea Building Society, said:

“The Society has ended its centenary year in great health, having delivered a record performance in 2023. This is despite the extremely difficult market conditions experienced during the year. I am extremely proud of how the Society has balanced the needs of borrowers and savers against a backdrop of a cost-of-living crisis, falling house prices and a rapidly increasing interest rate environment. Our 100th year has been full of activity, and I am delighted with how my colleagues have shown the level of dedication and care that our members deserve.

“The Bank of England has increased the Bank base interest rate 13 times since December 2021 as they have sought to reduce inflation. We are mindful that many of our mortgage customers have never experienced a rising interest rate market and were considerate of the impact that these dramatic increases could have on both new and existing borrowers. As a result, the Society’s weighted average interest rate paid by borrowers has increased by 2.88% at 31 December 2023, compared to the 5% increase in Bank base interest rate.

“Each time the Bank Base interest rate has changed, we have reviewed the Society’s savings interest rates to ensure that they are still highly competitive. The number of changes to the

Bank Base interest rate during 2022 and 2023 has made this task more challenging than in previous years, as the increased volatility in the savings market has made it more difficult to review the interest rates offered by other savings providers. It was therefore extremely pleasing that we were able to offer our savers such competitive rates that we achieved record savings growth.

“Producing strong sustainable financial results is just one aspect of the Society’s objectives. It is vitally important to the Society that we are also successful in terms of the quality of customer feedback and Member satisfaction. I was therefore delighted that based on customer survey feedback for 2023, 97% of respondents said they would recommend the Society to other prospective customers. This was particularly pleasing given the current economic climate.

“A key element of the Society’s purpose is to be socially responsible and to make a positive impact to the local community. We offer support not only through the products and services that we provide, but also by donating our time, skills, and resources. As 2023 was our 100th year of existence, in addition to the money raised for Maggie’s, our charity of the year, we donated an additional £100k to provide further support to local good causes in branch communities.

“To celebrate its 100 years, the Society held several events throughout the year to thank our members, introducers and suppliers for their support. It gave me great pleasure to be able to share the Society’s success with so many of our supporters across our core communities from West to East Wales.

“As we look beyond our 100th year, the Society is well placed to navigate through the challenging trading conditions caused by the current economic uncertainty. Our plans continue with the theme of digital transformation, as we embrace change by investing in our people and technology. Our members will therefore continue to see improvements in the way the Society delivers its products and services in the coming years. The increased growth and subsequent profitability of recent years has enabled the Society to make such investments, for the benefit of both current and future members.

“Our core goal of serving our customers in any way they choose remains. We will continue to support members through whichever channel is best for them, whether that is in-branch, telephone, or online. We pride ourselves on being a true mutual, with a member centric focus, providing relevant, attractive products and delivering exceptional customer service. Together with our robust financial strength, we are in a strong position to deliver on our purpose of providing members with tailored, flexible solutions.”

The Society will hold its annual general meeting at the Swansea.Com stadium on Thursday 25th April 2024. Members can vote ahead of that meeting or attend the meeting in person and the Society will donate a pound to Maggie’s cancer charity for every vote received.

Business, Business News, FInance

DofE Gold Associate Status Awarded to Swansea Building Society for Youth Empowerment Commitment

In recognition of its unwavering dedication to youth empowerment, Swansea Building Society has earned the prestigious Duke of Edinburgh Awards (DofE) Gold Associate status. This acknowledgment comes in the wake of the Society’s pivotal sponsorship of £20,000 for the DofE Gower Hike in September last year, with ongoing support in 2024 through a generous donation of £10,000.

The DofE Gold Associate status highlights Swansea Building Society’s commitment to creating opportunities for young people and aligning with the DofE’s mission to ensure universal access to the program. The Society’s sponsorship plays a direct role in advancing the ‘Youth Without Limits’ initiative, a strategic endeavour by the DofE aimed at eliminating barriers to participation and promoting diversity among its participants.

The £10,000 donation from Swansea Building Society for 2024 will be instrumental in addressing the needs of marginalised young individuals within Swansea. The funds will be allocated towards various initiatives, including participant bursaries, DofE participation places, and core frontline costs, ensuring that financial constraints do not hinder youth from participating in the programme.

The allocated funds will directly benefit young individuals within Swansea, particularly those facing socio-economic challenges, additional needs, or at-risk circumstances. Through strategic partnerships and a robust funding process, Swansea Building Society and DofE aim to swiftly distribute the funds to support those most in need.

Alun Williams, Chief Executive of Swansea Building Society, said:

“We are honoured to be recognised as a DofE Gold Associate, reaffirming our commitment to the youth of Swansea and beyond. Supporting initiatives like the DofE Gower Hike and contributing £10,000 for 2024 underscores our belief in the transformative power of empowering young people to reach their full potential.

“We recognise the importance of ensuring that all young people, regardless of their background, have the opportunity to engage in enriching experiences like the DofE programme, and by earmarking our donation to support those facing barriers to participation, we hope to contribute to building a more inclusive and resilient community.”

Ian Gwilym, DofE Wales Senior Relationship Manager, added:

“We are incredibly grateful for Swansea Building Society’s unwavering support and commitment to empowering young people through the DofE program. Their generous donation and dedication to addressing barriers to participation align perfectly with our mission to ensure that all young individuals, regardless of background, have the opportunity to discover their potential and develop valuable life skills. With Swansea Building Society’s partnership, we are confident in our ability to reach and support even more marginalised youth in Swansea, enabling them to overcome obstacles and thrive in both the programme and their future endeavours.”

Accountancy, Appointments, Business, FInance, News from Wales, Wales

Quantum Advisory promotes Simon Hubbard to Principal Consultant in Cardiff

Quantum Advisory, the leading independent financial services consultancy, today announced the promotion of Simon Hubbard to the role of principal consultant. Simon, who is based in the firm’s head office in Cardiff, took up the role from 1 January 2024.

Joanne Eynon, partner, commented: “Our success as a firm depends on the quality of our people and we are pleased to be able to recognise their achievements and support them as their career evolves. This promotion is a demonstration of how we grow our talent from within the firm, and throughout the region.

“Simon has proved himself to be an invaluable member of our team and this promotion is well deserved.”

 

Simon added: “Since joining Quantum I have been pleased to support our clients in all aspects of their journey. I look forward to now also lending my expertise to the strategic leadership of the firm as a whole. We are an ambitious firm with grand plans and to lead the actuarial team in Cardiff will be extremely satisfying.”

Simon joined Quantum in 2016 and sits on Quantum’s risk transfer team, helping to manage client projects and working with major insurers to track market prices and market sentiment.

He has over fifteen years of experience delivering trustee and corporate consulting advice including valuation negotiations, benefit change projects, company pensions accounting and member option exercises.

He is also a member of Quantum’s Defined Benefit Strategy Group and assists with the development of Quantum’s in-house actuarial models.

Simon is currently Scheme Actuary to a number of pension schemes.

For more information on Quantum Advisory, visit www.quantumadvisory.co.uk

FInance, Finance and Banking, Marketing, News, PR and SEO

Creative agency helps financial management consultancy build on growth through refreshed brand and new website

BATH financial services management consultancy Altus Consulting turned to Wiltshire creative agency Milk & Tweed to help come up a new brand identity and website as part of its major growth plan.

The 19-year-old company’s CEO Martyn Evans said its continued growth meant it needed a new website to better reflect its national and international brand and ambitions. “We are a specialist financial services management consultancy with deep and broad expertise in investments, insurance and banking and we wanted to make those things clear on the website,” he said.

Its marketing team met with Chippenham agency Milk & Tweed, which specialises in website, brand and logo design and digital marketing, and was immediately taken with its ideas. “We were really impressed with the design concepts they delivered for us because they had understood  our brand, vision and values, and culture  and came up with a design that reflected these elements,” said Altus Marketing Executive Helen Whitehurst.

“We were very clear we didn’t want a website that looked too corporate with images that were meaningless. We are challenging the traditional consulting model and wanted our teams’ collaborative and uniquely visual approach to be strongly reflected in the new site.”

The refreshed branding makes effective use of the iconic ‘A’ in its name across the new website. “It wasn’t very prominent on our old site but Milk & Tweed built it into the design layout of the new one. Now when you land on the site it has a real brand identity that is really clear,” she said.

Milk & Tweed migrated more than 1,000 insight articles from the old site across to the new, enhancing functionality so they are easier to find and converting many more from PDF format to on-page content to make them more searchable online.

“Milk and Tweed were head and shoulders above other suppliers we spoke to during the selection exercise, they really grasped the brief and presented a creative concept and it is a testament to them that this is more or less exactly what we ended up with,” said Mr Evans. “They were prompt, responsive, and a pleasure to deal with throughout the process.”

Altus, which has offices in Bath and London, has ambitions to grow its presence in the UK and internationally and become the most recognised specialist financial services management consultancy in the UK said Mr Evans.

“It was really important that we had a website that clearly articulated who we are, what we do and what we’re all about and we think we’ve achieved that,” he said.

Jamie Lawton, Milk & Tweed’s Head of Design said: “This project was a true collaboration and it was a joy to work with the team at Altus. We had two key aims in terms of design and functionality, we wanted to elevate the company’s visual style, creating a clear and recognisable look that could extend from the new website across their digital marketing and branded materials.

“Secondly, as thought leaders in financial services, there was an obvious need to make it easy for Altus’ visitors to discover relevant articles and insights.

“Altus have some huge names from the world of finance as clients and the new website holds up against any of theirs. Special mention should go to Helen Whitehurst at Altus, and Sam Jones at Milk & Tweed who helped deliver a project we can all be proud of.”

Find out more about the consultancy services offered by Altus at altus.co.uk and discover more about Milk & Tweed’s services at milkandtweed.com.

—

Pictured: Milk and Tweed Head of Design Jamie Lawton, left, web designer Sam Jones and Altus Consulting Operations Director Cat Atack at the launch of the consultancy’s new website

FInance, Finance and Banking, Finance News, News

61% of finance professionals have their sights set on becoming CEO

Whilst senior members of the finance team would prefer the top job at their current company, young professionals favour a job move first

London, UK – 13th February 2024:  The majority (61%) of finance professionals in the UK are aiming to become a chief executive officer (CEO) in their career, according to a UK survey of the industry by AccountsIQ, the award-winning accountancy SaaS provider.

Overall, young professionals are more ambitious about their prospects of moving out of the finance department and into the CEO’s chair, with 63% citing this aspiration compared to 59% of senior professionals. However, of those wanting to become CEO, just 46% of the younger respondents would like to do so at their current company. This is in comparison to 64% of senior professionals who are targeting the CEO job with their current employer.

The findings provide evidence to the growing connection between the role of the CFO and that of the business leader, with accounting teams increasingly relied upon to drive business strategy.

The data also reveals that finance leaders are succeeding in providing a clear development pathway to junior members of the team. In fact, 81% of young professionals report having a clear understanding of what they must do in order to achieve their desired career goals at their organisation.

Darren Cran, COO at AccountsIQ said: “It’s inspiring to see the ambition of young accountants to work their way to the top of corporate leadership through the finance team. The accounting department has always been a team which works closely with the CEO, but as the volume of data collected by the function has expanded, so has the pathway to leadership positions for those analysing it.”

Whilst ambition within the finance team is high, the survey revealed aspects of the role which cause issues with morale and culture. Over one-fifth (21%) of all finance professionals cited manual data entry as a leading cause of feeling undervalued. Additionally, when asked about the culture within the finance team, 30% of young professionals said better software and more automation of burdensome tasks would be key.

Cran added, “To truly enable these professionals to make that leap from finance to the CEO role, it’s essential that we liberate them from the shackles of manual, time-consuming tasks. By automating and streamlining financial processes, we can open up opportunities for talented individuals to engage more deeply in strategic decision-making, better preparing them for business leadership.”

The research was conducted among 502 finance professionals and accountants in the UK:

  • 251 young finance professionals between the ages of 18 and 35 who have up to three years’ experience, and who work in companies with between 40 and 500 employees up to middle management level
  • 251 senior finance professionals in companies that have between 40 and 500 employees, and who have 11 or more years of experience and are aged 31 or more

For more information, download AccountsIQ’s ‘Confessions of the finance function’ report today.

Accountancy, Climate, FInance, Wales

Global accountancy body in net zero first as profession steps up drive for sustainable future

ACCA (the Association of Chartered Certified Accountants) has become the first global professional accountancy body to have its net zero targets verified by the Science-Based Targets initiative.

 

The achievement highlights ACCA’s commitment to a sustainable future and is part of its larger focus on equipping and upskilling the accountancy profession across the world to drive the changes needed in businesses and organisations to achieve this.

 

Helen Brand, chief executive of ACCA, said: “The SBTi applies independent testing to net zero targets in line with climate science, and we’re delighted that it has recognised our approach and targets. It’s a great step forward on our journey to net zero.

 

“The accountancy profession has a critical role to play in driving good business decisions and best practice that will create more sustainable businesses and a better, greener future for all.

 

“We’re working hard to drive this transition through our 773,000 members and future members in 181 countries and our work to influence policymakers. And it’s important that we apply best practice in our own operations.”

 

ACCA is targeting a 50% reduction in carbon emissions by 2030 and net zero by 2045, using science-based best practice.

 

The Science Based Targets initiative (SBTi) drives ambitious climate action in the private sector by enabling organisations to set science-based emissions reduction targets. It brings together experts to provide organisations with independent assessment and validation of targets.

 

Find out more about the role of accountants in sustainability.

Appointments, FInance, News, Pensions

Vidett boosts growth with five new strategic appointments

Vidett, a UK leading professional trustee and pension governance firm, has made five strategic appointments across the business as part of its growth strategy.

Katie Clegg (pictured above) has joined as a client director to support clients with their governance and scheme secretarial needs. Katie is a highly experienced pensions professional, known for developing frameworks to enable trustees to successfully govern their pension schemes, with a focus on board structures and board effectiveness.

Previously, Katie worked at Aon for over 18 years in various roles, including scheme secretary, governance expert and client relationship manager. During her time at Aon, Katie led on providing scheme management, governance, and secretarial support, supporting on strategic discussions and end game planning to several large clients.

 

Emilie Bissett

Another recruit is Emilie Bisset who has been appointed as a manager and will act as scheme secretary on a portfolio of clients. Prior to joining. Emilie worked for DHL, starting her career in 2008 as a pensions administrator, before moving into a variety of roles including benefit technician, payroll lead and managing the DHL Retired Staff Association.

Since 2019, Emilie has worked in a secretariat role, supporting the multi-employer, multi-billion-pound DHL Group Retirement Plan. With recent focus being very much on TPR’s general code, Emilie has had exposure to implementing an effective system of governance in line with Own Risk Assessment requirements and developing cyber security requirements.

 

Nic Pytlinski has joined the people services team in London as a Talent Acquisition Specialist, from MBK Search where she ran their EMEA division. She is responsible for Vidett’s recruitment strategy, candidate experience and talent acquisition operations. Nic brings a vast amount of experience with most of her career spent in talent acquisition at Vermelo RPO and Markerstudy Insurance.

 

Jacob Seymour has been appointed as a Senior Management Accountant to look after the implementation of a new accounting system, and to develop new processes and policies. He joins from online car retailer, Cinch where he was an Assistant Management Accountant, before progressing to Management Accountant after gaining his Chartered Institute of Management Accountants (CIMA) qualifications. He has also worked in accountancy roles at Acal BFi UK and FISco (UK) Ltd.

 

Sharon Marlow has also joined as a Finance Analyst. Sharon has over 38 years’ experience working in accounts payable and has worked for a range of different companies, including large corporate companies such as Microsoft, to smaller family run businesses.

 

Commenting on the appointments, Wayne Phelan, Co-Chief Executive at Vidett, stated:

“Vidett is growing fast, and we’re delighted to start the New Year by welcoming these excellent new recruits. Katie is a highly regarded pensions professional and is already playing a key role in helping trustees set the strategic direction for their schemes.

“Emilie has spent her whole career in pensions management and brings invaluable experience working on the General code. Nic has some impressive achievements to show for her recruitment career including turning hiring time around from 6 weeks to 14 days and supporting a business to become an employer of choice.

“Jacob’s finance career has seen him work across a range of industries and develop robust management accountancy skills which will be vital for our new finance team in Reading. Finally, Sharon’s knowledge in all areas of finance from working on accounts, to data input and online banking apps will further strengthen the finance team. We wish them all the very best in their new roles.”

 

Vidett is a privately owned business, independent from any other provider of services to corporate pension and employee benefit schemes. With an unrivalled knowledge bank to support client needs, Vidett currently looks after over 475 clients with total assets in excess of £142bn and over 2.5 million scheme members.

 

Accountancy, Business, FInance

DIVERSITY AND INCLUSION CRITICAL TO TACKLING FINANCIAL TALENT SHORTAGE

  • 64% of UK finance professionals prioritise diversity and inclusivity when choosing an employer.
  • A further 76% of Gen Z employees rate diversity and inclusivity as one of their top factors when job hunting.
  • 46% of Gen Z believe their organisation focuses more on things like gender diversity than other important areas such as neurodiversity.

 

Almost two thirds (64%) of UK finance professionals rated diversity and inclusivity as a key factor when choosing an organisation to work for, as revealed in new survey data.

This wake-up call for employers comes in the biggest global talent survey across the accountancy profession, conducted by ACCA (the Association of Chartered Certified Accountants). Its latest annual Global Talent Trends Survey 2024 provides a unique and vital view of how people feel about their life at work in the financial sector.

While diversity and inclusion (DE&I) strategies are nothing new, they have risen in importance amongst financial talent when it comes to choosing a place to work – putting the pressure on employers to deliver DE&I policies in order to attract and retain the best talent.

The newest generation of talent, Gen Z, are more likely to put DE&I at the forefront of their job search, with 76% of this age group rating it as a key factor in their choice of organisation. ACCA’s research is backed up by a wealth of studies which show Gen Z is more principled than their older counterparts, and working in a diverse and inclusive environment matters more to them than salary.[1]

As attracting and retaining talent for the future becomes more important to companies, understanding what employees really value from employers is becoming critical to not just know, but to implement and put into action.

With an ongoing cost of living crisis, it’s no surprise that 50% of UK finance professionals are planning to ask for a pay rise within the next 12 months. A further 49% believe that the best way to secure a pay rise is to leave their current organisation. And with 54% of finance professionals expecting their next career move to be external to their current organisation, employers need to embrace this insight and take steps to retain talent.

Without the shoring up of other workplace factors like diversity and inclusion, hybrid working models and mental health support, ACCA believes there is a real risk that employers could face a move of half of their current workforce in the next 12 months.

 

Jamie Lyon, global head of skills, sectors, technology at ACCA, said: “The shortage of talent and cost of meeting pay rise demands, together with the many job opportunities available to professional accountants, mean that attracting and retaining talent presents a huge ongoing challenge for employers. So, it’s unsurprising that the number of respondents planning to move away from their organisations remains high, at 54% again this year.

“However, with 64% of respondents saying that a strong diversity and inclusion culture is a key factor in choosing an employer, there’s a real opportunity for employers who are strong in this area to differentiate themselves in a competitive market.”

 

Lloyd Powell, head of ACCA Cymru/Wales, said: “The latest Global Talent Trends report shed interesting light on the situation around the world and at home here in the UK. Hybrid work was a trend that emerged from roundtables with Welsh ACCA members in particular.

“Whilst diversity and inclusion has emerged as a trend in the overall data, in Wales our roundtable sessions put the spotlight on hybrid work. Speaking to ACCA Wales members, there has been a recognition that certain tasks, especially those involving collaboration, are better carried out in the office, rather than remotely. Less experienced staff, including trainees, can learn more by spending at least a proportion of their time in the office. Of course, there are virtual ways of collaborating and supporting trainees and more recent recruits at a distance, but this was certainly the view expressed by many Welsh participants.

“Finding ways to support employers in implementing effective DE&I strategies, attracting and retaining diverse talent, supporting effective working patterns, and remaining competitive from a salary and job opportunities perspective is something ACCA will continue to support members with through education and policy outreach.”

 

Visit ACCA’s website for more information.

View the full Global Talent Trends report here.

[1] Deloitte research

FInance, Finance and Banking

Expanding Your Business with Global Payment Rails

In the current interconnected global economy, the ability to engage in seamless international transactions is a key factor in a business’s growth and expansion. The advent of global payment rails has provided businesses with the means to efficiently manage cross-border payments, catering to a broader market and diversifying their customer base. Utilizing these payment systems not only simplifies the transaction process but also opens new avenues for international trade and collaboration.

This article explores how businesses can leverage global payment rails to expand their reach and flourish in the global marketplace.

Harnessing the Power of International Payment Networks

Global payment rails offer a streamlined avenue for businesses to accept payments across different countries and currencies. By leveraging these networks, companies can ensure swift and secure payments to international suppliers, partners, and customers. This ease of transaction is crucial for businesses looking to establish a strong presence in foreign markets. The ability to transact in multiple currencies is not just a logistical advantage; it also signifies a commitment to meeting the diverse needs of a global clientele, enhancing the company’s reputation as a versatile and customer-centric business.

These payment systems also facilitate better cash flow management for businesses operating internationally. With faster payment processing, companies can improve their liquidity, essential for maintaining smooth operations and investing in growth opportunities. Efficient cash flow management is particularly beneficial for small and medium-sized enterprises (SMEs) looking to expand their operations beyond their home markets.

 

Integrating Advanced Payment Solutions for Global Growth

Incorporating global payment solutions into a company’s financial operations marks a significant step toward operational efficiency and global market expansion. Advanced payment technologies, particularly API integrations, allow businesses to automate their payment processes. This automation streamlines transactions, reduces manual workload, and decreases the likelihood of errors, which is especially beneficial for companies looking to scale up without adding extensive administrative tasks.

Adopting these advanced payment solutions equips businesses to effectively tap into emerging markets and ride the wave of burgeoning e-commerce trends. The growth of digital commerce necessitates the ability to process international payments efficiently, beyond mere transaction facilitation. It’s about integrating into the global digital economy, an increasingly crucial move for sustained business growth in a digitally interconnected world.

This integration also enables businesses to offer diverse payment options, catering to the preferences of a global customer base. Companies can enhance customer satisfaction and loyalty by accommodating different payment methods and currencies. This flexibility is not just a convenience for customers; it’s a strategic move that opens up new markets and customer segments.

Integrating global payment rails into a business’s financial strategy is critical to achieving international growth and success. These systems provide the necessary infrastructure for smooth and secure international transactions and demonstrate a business’s commitment to accommodating the diverse needs of a global audience. As businesses navigate the complexities of the global market, the ability to process payments efficiently across borders, provided by companies such as OpenPayd, will remain a key determinant of their growth and sustainability.

 

Accountancy, FInance, Finance and Banking, Wales

ACCA welcomes proposals to strengthen auditor reporting requirements on breaches of law and regulations

  • ACCA backs FRC proposals to allow auditors to focus on laws and regulations that are most likely to have a material impact on the financial statements.

 

ACCA (the Association of Chartered Certified Accountants) is backing FRC proposals to enhance auditor quality and foster users’ confidence in financial statements.

 

The FRC – the UK’s accounting regulator – is proposing enhancements to existing requirements. This would strengthen auditor requirements to detect and report material misstatements from non-compliance with laws and regulations, and to clarify instances auditors should report such breaches, and other significant matters, to the relevant regulators.

 

The FRC says updating ISA (UK) 250 and ISA (UK) 2X0 will enhance the usability and informativeness of the audit and provide greater assurance to users of financial statements that potential material misstatements have been properly assessed by the auditor.

 

Jessica Bingham, policy and insights lead, (EEMA & UK), ACCA, said: “Enhanced requirements for auditors to consider and address relevant laws and regulations will promote transparency and accountability, ultimately bolstering investor and stakeholder confidence.”

 

ACCA welcomes FRC’s acknowledgement that auditor’s responsibilities cannot be open-ended in terms of identifying and determining compliance with all laws and regulations relating to the entity.

 

To assist, the FRC is introducing a more robust risk assessment process. This will help auditors identify those laws and regulations that have, or may potentially have, a material effect on the financial statements.

 

However, Bingham adds: “ACCA asks that the FRC carefully consider the risk that in practice the impact of the updated requirements could be to shift workload from management to the auditor.”

 

The FRC is proposing switching from a procedural approach to an outcome-based approach, using risk focused assessment for the identification and assessment of relevant laws and regulations.

 

ACCA says this gives flexibility and discretion to auditors, allowing them to exercise comprehensive professional judgement to identify the likelihood and materiality of misstatements.

 

While acknowledging resource issues, ACCA is calling for ISA (UK) 2X0 to apply eventually to listed entities as well as public interest entities.

 

Bingham said: “We recognise the need to avoid burdening those with limited resources but believe that the proposed application material for ISA (UK) 2X0 appears to be a valuable asset for auditors, offering practical guidance on identifying and addressing suspicions of non-compliance.”

 

The revised ISA is set to come into effect for audits of financial statements for periods commencing on or after 15 December 2024.

 

Visit ACCA’s website for more information.