Auditors are poised to raise the red flag over their clients’ accounts having been criticised for not being tough enough – and it’s making regulators very nervous, writes James Moore
Is a fresh bout of bloodletting on the stock market just around the corner? Having been harshly, and justifiably, criticised for turning a blind eye to problems bubbling under the surface of some very big corporate names (Thomas Cook, Carillion, Patisserie Valerie, etc) it seems auditors are finally of a mind to get tough.
This means a large number of companies could end up with question marks applied to their accounts when they are published over the coming weeks and months. Think retailers classed as “non-essential” during the lockdown or those in the leisure and hospitality sectors.
Auditors could almost be justified in attaching a red warning light to any consumer-facing company.
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