February 2014

Were UK Bank accounts presenting a True & Fair picture?

The UK accounting watchdog, the Financial Reporting Council, is all set to review the bookkeeping of the big banks following the crisis of 2007 - 2009.

Last year I had a meeting with a very senior person in the Bank of England. I said that as an accountant who qualified with Coopers & Lybrand, now PWC, I was puzzled that no-one had yet sued the Big 4 accountants after they had signed off all the bank accounts with no qualifications - a totally clean bill of health. I suggested that the only sensible reason was that they were, like the banks, too big to fail.

This review will start in a few months and it's conclusions will be interesting, to say the least.

At our end it's no doubt a lot easier, nevertheless we still follow the cardinal principle of being able to understand and validate everything in the Balance Sheet. I do wonder how many auditors or indeed banks really did understand what the numbers represented?

Anthony Pilkington, Managing Director, BookCheck Ltd

This entry was posted in Accounting, Business Development and tagged in Accounts, Bookkeeping, Balance Sheet by bookchadmin