Accounting giant PricewaterhouseCoopers has welcomed the interest rate cut, saying that it will help to prevent a "prolonged" recession.

The Bank of England and five additional UK banks cut interest rates by half a per cent earlier this week in a bid to restore balance to a global economy that is reeling from last year's credit crunch.

In addition to the cut, the government a £400 billion bail-out package designed to breathe life back into the UK's banking system.

John Hawksworth, macro-economic adviser at PricewaterhouseCoopers, said: "We welcome this co-ordinated global move to cut interest rates, together with the bank recapitalisation plan announced by the UK government."

Mr Hawksworth added that the move would probably not be enough to prevent the UK economy from sliding into technical recession, as all this requires is for zero overall economic growth, rather than business growth, to be reported in the third quarter.

However, recession may be curbed instead.
" /> Economic downturn 'leads to early talks'
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Economic downturn 'leads to early talks'

News Article - 23 May 2012
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Auditors are going through business accounts with company bosses early this year as a result of the economic downturn, the Financial Times has reported.

The newspaper claims auditors will monitor business progress and consider the ability of firms to continue as a going concern.

It states auditors must decide whether to sign off a business as being viable for at least another year.

Speaking to the Financial Times, senior audit partner at PricewaterhouseCoopers (PwC) Andrew Ratcliffe said: "We're not just looking at indebted companies, but all those vulnerable to the way the economy is going."

Senior accountants claim discussions are being conducted early in an attempt to avoid last-minute shocks.

A going concern review involves looking at budgets, productivity and business goals.

The UK's accounts watchdog, the Financial Reporting Review Panel, has said it will be paying particular attention to retailers, commercial property, housebuilders, leisure and banks.

Earlier this week, PwC said the credit crunch was responsible for more businesses wising-up to the advantages of managing tax effectively.

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