Rising frauds appear as a boon for London forensic accountants

London Chartered Accountant firms are expected to make big money for nest three years as most organizations are turning towards them for help in dealing with the rising regulatory investigations and new anti-corruption laws. The large accountancy firms in UK are estimated to have churned nearly £200 million pounds last year form these forensic accountancy works such as investigating frauds, advising companies to resolve legal disputes and recover lost or stolen assets. The forensic accounting business is expected to peaking even higher by 2012.

The frauds and legal disputes are born of the economic recession, increasing activities of the UK regulators and the initiation of the new anti-corruption laws. The forensic accountants are called upon by a company suspecting a financial fraud in the organization to detect the guilty and recover the lost assets. The forensic accountants are also appointed to investigate the background of a new recruit or appear as witnesses in court cases.

The Government’s recent crackdown of the corruption and bribery has opened up new domains of employment for the UK forensic accountants. The bribery bill that is due before the election is expected to forces penalties on companies engaged in under-the-table dealing to obtain foreign contract. Moreover, the companies failing to control corruption and bribery among their staffs will also be subjected for criminal prosecutions.

The government’s strict stance will be second by the Serious Fraud Office’s efforts to lessen corruptions and bribery in organization to a considerable extent and thus creating even more work opportunities for London forensic accountant firms.

Financial Cuts to Improve UK Economy?

As the US announced the official end of the recession within its perimeters a couple of months back, the UK too, seems to be on the verge of announcing the same. However, like a probable Tsunami victim, the financial condition of the former imperial bigwig is yet to recover as much ground as it has lost during the Economic Slowdown.


This has prompted the new David Cameron-Nick Clegg government to introduce more financial cuts, which they say will help put the spring back into the step of the British economy in the near future. The spending cuts, proposed by many chartered accountants in London as harsh and perhaps more detrimental than helpful to the economy, will be around 25% over a period of 4 years from April 2011.

Public sector borrowing might hit the unbelievably whopping mark of $238 billion, with the main core of the cuts being focused on defense and public welfare. This too has aroused concerns among the Brit politicos, who say the war on terror as well as the still unsteady and weak financial condition of the citizens will take a bad hit from the same.

Whether these measures success in giving the jet-pack of the UK economy it’s ignition fuel, only time can tell. However, for those willing to see a more free role of the public sector in economic spending will be happy with the cuts.

Property markets and real estate liaison agents would not be so – especially as this sector had taken the hardest beating during the Downturn days.

Chartered Accountants Can Help You Save a Fortune!

While most of the corporate firms had been trying to save a lot of money by laying off the chartered accountants off their payroll before the recession, most are now trying to save their skins by hiring teams of these financial consultants after it.


And as a fact, surveys show that the firms that had been employing full time financial consultants or chartered accountants in London and elsewhere have figured better while coming out from the ashes of the economic recession. Banks, mortgaged properties, financial establishments, start-ups et al crashed without a trace because of financial mismanagement and cover ups.

All of this could have been saved had there been more stringent financial boundaries and chartered accountants had been provided much more freedom in the industry. This trend however has been allowed of late, with most entrepreneurs realizing that it will help them save more than they could have by restricting investment in such financial consultancies.

Chartered accountants in London can also help predict the future tides in the industry, and thus make investments in stock markets or business expansion safer and more result-oriented. In other words, CAs can make investments and ROI better than before, all without having to over-spend at any moment whatsoever.

Do you think chartered accountants can help save some? Let us know through your comments below!

The Sky is the Beginning for Chartered Accountants Today!

For most of the professionals working in a dystopian world post-recession, it is a dark future ahead with no signs of the after effects of the financial draught healing soon. However, for the chartered accountants in London and elsewhere, the bane for everyone else has turned into a boon for them.


As most CA firms and audit agencies report, there has been a tremendous upsurge in the demands for these professionals. Some of the corporate units are deploying hordes of chartered accountants and financial consultants as a precautionary measure.

Some, on the other hand, prefer employing the chartered accountants to brush up their finance tail ends, as well as help create a more robust monetary atmosphere for themselves in the industry. Whatever be the case, CAs are having it good in the current scenario, with job security and paychecks being the best in the industry.

However, quoting from a popular movie, with larger paychecks, come greater responsibility. And while the chartered accountants in London can now increasingly find it easy to afford an indoor Jacuzzi, they can’t find time or the mental peace to relax in it. Reason? Workload!

So what do you reckon? Would Chartered Accountants enjoy the sunny side of life while the shadows are yet to pass form the corporate carpets? Or did we speak too soon? Let us know through your comments below!

CAs Face the Heat as Global Economic Crisis Fades Off

With the economic recession now in the backburner, you would have thought that the pressure on the chartered accountants in London and elsewhere had subsided. Wrong! In fact, the CFOs now wish they had been abducted by UFOs, that is the amount of tension and responsibilities being mounted on their broad but limited shoulders!


The recession has given way to hope and bleak signs of economic revival. This is propped up by Mr. Barack Obama’s statement that the official recession was over. Now that the commoners and the firms have signed a breath of relief, CFOs are in the opposite end of the coin.

The dark side of the moon is shining on chartered accountants, with increased scrutiny of their performances and a gigantic focus on them as catalysts to financial and business growth – the CAs are really having it rough in the UK and beyond.

So until recently CFOs and CAs had been score-pointers, and were almost invisible from the frontline. The situation has changed so drastically that today most firms cannot dream of doing away with their accountants and financial experts – knowing that this will be hara-kiri on their part.

The only shining light in these times of increased is the amount of limelight and attention the financial professionals are getting. All because with great hope, comes great responsibility. And for all that banter, chartered accountants in London are the only ones that are not in the fray of being laid off – no matter how bad the financial situation gets!

UK Finance Might Under-Go a Sea Change Soon!

The British economy is still working its way up on its feet. And the renaissance of the banking and financial sector is being led by the Cameron government, which has started looking into the financial domain for possible flare-ups of issues.


A committee formed by the government, which includes input form the important chartered accountants in London and similar larger firms, will advise and monitor the bigwigs in the banking industry. This is to stop what had triggered the Economic Recession of the 08-09 in the US – the “too large to fall over” mentality.

Although a lot of people are praising this foresight, it will only remain to be seen how effective the committee and the chartered accountants are against stopping the Brit government from falling back into the clutches of another slowdown.

However, the fact remains that the committee or the super-group(!) will be taking its time to make recommendations. It has been said that the group will be studying theses and banking notes on the current fiscal scenario and then would be making recommendations based on the same.

Although most prefer the breaking up of bigger banking sectors into smaller domains that would give more flexibility and fiscal security to both smaller banks as well as clients, it is still in the nascent stage.

What do you think? Is UK following in the red-faced footsteps of Greece? Or are they on their way back to a stronger financial market, quite akin to their Asian counterparts? Do let us know through your comments!

Economic Recuperation May Hit a Standstill in the UK

Chartered accountants in London and elsewhere in the UK are at the helm of the economic predictions again – and they do not have much good news to give! In fact a study has revealed that the worst after-effects of the economic lowdown is yet to be felt across the UK.


Akin to a crocodile, the tail of the recession is much more powerful and dangerous in its sudden and flash-like attack. And most of the firms, as the study by these chartered accountants have found, are inept in handling the backlash originating from the same.

The study found that though the government suggests a great growth and recuperation period for the economy, almost one-third of the SMEs are still grounded in the ashes of the recession. And according to the study, a compiled study of opinionated views of the UK economy from the chartered accountants in London has shown that one-third believe that it is weak or worse.

As traditional finance resources are ignored, the working capital of a lot of firms has dried up to the point of extinction. Add to this the issue of bad debts and the lack of protection against it – and you have a financial calamity waiting to happen again. A lot of accountants have compared the situation to the travesty of Greece’s economy before being ravaged by the recession.

So, from the perspectives of growth or performance, the economy is still on weak knees. And if it doesn’t grow string hands to hold on when the whiplash comes, the whole castle will come crashing again!

Are the financial sector employees putting longer hours?

Most people employed in tax- jobs in London may find that they are being relied upon to work for longer hours for helping their firms during this time of severity. However, the professionals in the tax jobs and the chartered accountants in London need to ensure that they are not regularly made to work overtime without being sufficiently paid for it.



According to a survey the financial sector professionals are working more then they did before the time of recession. It is not a myth that many works are spending nearly 50 hours each week at their office desk.

However, it has been found that there are deceitful employers out there who would be putting excess pressure on the employees which is unlawful and undue as the cost of job loss is really very expensive. The recent research by the Contact Law showed that there was nearly 15 percent increase in people seeking advice on employment related issues between the months of June and July this year.

Britons, especially chartered accountants in London, employed in financial sectors are in search of new employers where their hard work will be genuinely rewarded.

CFA Pass Rates Plummet, Financial Firms Worried

As the recession and the financial apparatus of the country is slowly stuttering back into life, the demand for more qualified Chartered Financial Analysts, or chartered accountants, is going up. However, in a disappointing pattern, the pass rates for CFA examinations in both first and second levels have plunged.



While 58% of applicants failed to pass the first level of the prestigious examination, only 39% of the ones who had qualified managed to break through to the third part of the examination from the second level.

As the Wall Street is in a pro-hiring mood after cutting almost 350,000 in the last 2 years, a record number of people have applied for the examination and certification - 139,900 to be precise! Apart from the US alone, there were about 16,000 from China and 12,000 from India as well. Applicants from other countries had also applied for the same – and were pretty strong in number too.

However, unlike chartered accountants in London or New Delhi, the CFA candidates have fairly disappointed the experts. With pass percentages dropping to lower figures, it could define either of two things – either the examination was becoming more difficult to crack, or there were too many eager applicants without the necessary training required to pass such tests.

While average applicants take about 4 years to complete the 3-part examination process and invest about 300 hours to do so, it is becoming increasingly evident that one needs to put in much more time and effort if he/she wants to work with the bigwigs of Wall Street.

OR perhaps it is time for a more stringent check on credentials before allowing applications to go through!

UK is Contemplating Tax Reforms Of Late!

With the new David Cameron led Conservative-Liberal Democrat government making umpteen changes to the policies and formats in the British national and international domains, tax reforms were only waiting to happen. And finally it has – with Cameron citing that tax reforms will rejuvenate the economy rather than bludgeon the common taxpayer.



Of the several reforms that have been proposed, one which will be delighting the online and offshore enterprises has to be the hint at cutting taxes on foreign profits in the country. This makes for a huge breather to firms that have had foreign investment or offshore profits within their capital in the post-recession period.

Also, a lot of enterprises that had already been voicing their concerns over the instable tax rates and policies would possibly quiet down. Pension tax credits and annual tax reprieves may also see possible changes, especially with the recession now in the backburner.

As David Cameron, who is showing promises of a brave leader, has vowed that the tax reforms can literally define a new era for the UK businesses. These changes in taxation policies can actually help the British economy rise from the ashes of a recession, which had struck a severe blow into the wheels of progress for the same (albeit with the due help of chartered accountants!).

As for the actual impact of the tax reforms, they can only be concretely measured in 2012 – and any projections before that period are only stones thrown in an economic dark (one which Cameron wished would be lightened up in good measure in the future!).

Offline or Online Tax Returns – Which One Is Right?

With the advent of e-commerce and the digital age in the domain of finances and taxes, everyone can now avail the option of filing tax returns online. However, whether it is better over the offline mode of filing such tax returns is still a raging debate in most parts of the world. So what pros and cons do each have, and what should you weigh in favor of each before opting for one? Come, let’s discuss!



Offline tax returns are the traditional way to do things – right from paperwork to physically going into office to mail or file the tax returns yourself. Apart from this, physical filing of tax returns with the help from chartered accountants (in London or elsewhere) is completely secure. Unless you have hired a scammer or a fraudulent firm, offline filing of tax returns can be safe as well as assuredly completed.

However, offline tax returns are slow, and can take up a large amount of your time. From being caught up in bureaucratic red tape to taking time in choosing a personal chartered accountant, offline filing of taxes can be a major headache – from the perspective of time.

Online tax returns capitalize on this issue effectively. Although you still would need to hire a veteran chartered accountant, the time consumed in the process is brought down dramatically. In fact, online filing of taxes can actually save you a truckload of time – which you can actually invest in getting a better chartered accountant and engage allied business purposes.

So while both of them are right in their places, you need to choose the option which suits you and your budget best!

When Caught in a Tax Hike, Catch Your Chartered Accountant!

Tax hikes are round the corner with the November elections in the US, and you better be looking around for your trusted chartered accountant! Why? Simple – because most of the firms will turn topsy-turvy with each tax policy change and most of us wouldn’t know how and what to do with our finances till long after the tax damage has been done.



In 2001, Bush’s tax cuts did it. And in 2010, new changes in tax policy, possibly hikes, are going to ruin the finances again. Since the revenue from the tax dividends had dwindled over the years to the recent recession-inflicted downfall, the tax rates are bound to shoot upwards.

However, what is the most terrifying of threats in the financial industry of late – is the increasing expenditure in the wars being led by the US government in Iraq and Afghanistan. Add to this the costs incurred in planning and executing military exercises with countries like South Korea and also strategic intelligence and covert operations in rogue nations – and you have much on the taxpayers’ hand to stare at in disbelief!

So while most of the firms have already started hiring the best of chartered accountants from London and elsewhere, chartered accountancy agencies are also in good business terms as of now. All that may change for them come November elections in 2010, but only for the better!

And if you are still worried on how much tax you are going to pay, try engineering a research and analysis onto the recent tax policy trends form the government. And hire a veteran chartered accountant right now!

Chartered Accountants are on Top of the Salary Ladder

Chartered accountancy has managed to stay put on top of all other professions, as far as remuneration is concerned. This time, the survey of around 10,000 chartered accountants in New Zealand was made, which proved that the average earning capacity for these professionals was around $140,000!

With the recession and the unstable economy notwithstanding, the attrition and layoff percentage for chartered accountants around the world was one of the lowest in the industry – a big initiating point for people wishing to carve out a career from this niche profession.



The trend is similar for chartered accountants in London or New York, as they were the top gainers as far as salary increase is concerned – almost 14% over the year. With the fact that the unstable economy has been slowly coming off its hinges of late, the need for chartered accountants to set financial records straight and find a way out of the monetary chaos has only rocketed in the last couple of years. Companies like PriceWaterHouse Coopers and allied firms have made the most profits, although some have come under the scanner for being inconsistent with their audits.

So while chartered accountants bask in the glory of high pay, job security and corporate stability, it is time that smaller firms realized the potential importance of these professionals. Only a year or two ago, people thought of honest audits as a sign of a fallen firm. The scenario has turned 1800 of late, and you can’t really blame the chartered accountants to ask for the pay they deserve!

South African Company Laws Allowing An Option for Audit/Review Can Be Dangerous!

South African Institute of Chartered Accountants has been on its tiptoes as far as the new company laws are concerned. The new laws, if passed, will allow the companies in the southernmost African nation to bypass a formal audit in favor of an independent review from a body of regulators and executive auditors.




The Institute has warned directors and owners of firms across South Africa, that a review may not be cheaper or the safer mode of handling accounts, especially with the punishment of such offenses becoming stricter in the near future. This warning has not gone unnoticed, as almost 125 of 200 firms surveyed have affirmed their trust on audits, even if they are self-initiated, as against relying on independent reviews as per the new law.

Chartered accountants in London or New York or elsewhere have been a crucial keg in the financial machinery of the companies worldwide. One of the main factors that bolstered this claim was the fact that bad audits, especially of the Lehman Brothers had actually snowballed into the dreaded economic crisis of 2008-09.

If South African firms happen to be wiser, they would opt for a robust regulating pattern, rather than taking it easy with the option of independent reviews and not opting for audits at all.

Your opinions please……

The Big 4 Auditors Hire Independent Directors to Deal With Regulators

While the economic recession and the slide snowballed from the Lehman Brothers’ bankruptcy, a number of accountancy firms were to blame for the same. These included the chartered accountancy bigwig Ernst & Young, who had been accused of providing an executive watershed to the Lehman Brothers’ bad finances.

Deloitte, PricewaterhouseCoopers (PWC), Ernst & Young and KPMG have all decided to induct independent directors to help answer the critics and showcase an unbiased and transparent audit process while looking into the accounts of the biggest of their clients (which, incidentally, also includes some of their scathing opponents).



This move might outpace some of their strictest critics, who have been calling for regulatory bodies to monitor the work done by these audit firms of late. PWC, one of the household names in the domain in chartered accountancy worldwide, has also come for heavy criticism for its handling of ‘Satyam’ accounts, a software corporate major in India. The fake profits shown by Satyam CEO Ramalinga Raju had been allowed to go unnoticed and unaccounted for by the Indian branch of PWC, and has hence taken a dent on its authenticity and transparency among the CA fraternity globally.

The employment of these independent executives and directors may however, only bring peace to the critics till that long. For, one misstep by the same, and the whip might come lashing down on these firms again.

Do you think it was a wise move by these auditing giants? Let us know through the comments section!

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