Financial Controls

14th September 2015

Pay Suppliers Electronically: Beware fraudsters.
Do you hold your suppliers bank details on file – one tactic recently used by fraudsters is to advise businesses of changes to a supplier’s bank details, they then wait until a genuine purchase invoice is paid. Unfortunately because the supplier’s bank details are compromised, the payment goes to the fraudster.

To protect against this there needs to be robust internal control routines for changing bank details, perhaps including a phone call to the suppliers using an independently obtained telephone number.



 
Other items in Audit
 
Jaimie King
14th April 2020 Covid-19 and stock-take attendance

Companies that require their accounts to be audited, and hold significant levels of stock at their year-end, expect a visit from their auditors annually to perform test counts of their stock.   However, during the current lockdown, auditors are considering other ways to gain the assurance they need over the stock levels held. Some suggestions…

Read More »

Jaimie King
7th June 2019 Digitalising stocktaking

As the world becomes more digital, it leaves us wondering where further efficiencies could be achieved through switching to more high-tech methods. One possible area for auditors is stocktaking. For an audited entity with significant levels of stock at the year end, it is likely the auditor will want to perform test counts of the…

Read More »

Jonathan Moore
6th June 2019 Don’t take record keeping for granted

It is common for entities who undertake research and development to receive grant funding for projects that they undertake. Grants will often be paid on the basis of expenditure incurred or a proportion thereon and may be awarded with certain conditions attached.   One such condition for grants above a certain level will be the…

Read More »

Daniel Christopher
29th October 2018 Great audit expectations

No audit sets out to conclude with total confidence that a set of financial statements are 100% free from any misstatement. To do so would belie the technological reality and scale of modern business; auditors would likely become a permanent fixture at client premises to review every single business transaction and audit would become an…

Read More »

Jaimie King
20th June 2017 Brexit: The end of UK audits?

Audit thresholds are linked to the small company limits, which are currently set by the EU. The UK can choose to impose a lower threshold than the small company limits, but not a higher one. As a result of Brexit, power will return to the UK, and as a result the cap on audit thresholds…

Read More »

Richard Meadows
1st November 2016 Client Money

Solicitors: New rules for handling client money. The consultation period has now closed on the proposed new rules for how solicitors handle their client money: Proposed Draft Solicitors Accounts Rules

Read More »