Liquidity issues 'at forefront of audits'

News Article - 21 January 2008
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Large Irish accountancy firms that audit banks have been told to report liquidity or solvency issues found in financial reviews, reports Accountancy Age.

According to the magazine, the Big Four audit firms must send the Irish Financial Regulator copies of their clients' reports in order to provide assurance of lenders access to cash in an attempt to monitor business progress.

KPMG, Deloitte, Ernst & Young and PricewaterhouseCoopers must provide details of all important audits, following concerns over impact of the credit crisis.

In related news, the Auditing Practices Board has issued flexible guidance for the careful planning of audits in difficult financial conditions.

Bulletin 2008/1 focuses on how reduced finance may result in wrongly assessed statements of risk, especially valuations of assets.

Richard Fleck, chairman of the board, said the guidance was prepared to help accountants "complete their current audits with appropriate rigour".

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