Today’s news in brief – 30/7/2024
The Financial Reporting Council (FRC) has warned BDO and Forvis Mazars that they could be barred from auditing major clients unless their performance improves. The FRC’s annual audit survey found BDO’s acceptable audits dropped to 33% from 69%, while Forvis Mazars fell to 44% from 56%. Overall, audit quality rose, with 74% deemed good or needing limited improvements. The Big Four firms showed significant improvements, with Deloitte at 94%, EY at 76%, KPMG at 89%, and PwC at 76%. Despite these gains, the gap between the Big Four and other Tier One firms has widened, prompting the FRC’s concerns.
The ACCA’s report, “Neurodiversity in Accountancy,” highlights the advantages of hiring neurodivergent talent, including enhanced creativity, productivity, and workplace culture. With an estimated one in five people being neurodivergent, firms have a responsibility to create supportive environments. The report shares success stories from firms like EY and HMRC, showcasing benefits such as brand recognition and access to untapped talent pools. Jamie Lyon and Tania Martin, co-authors of the report, emphasize that neuro-inclusion should be part of standard practice, benefiting not only employees but also clients and customers, making it a competitive advantage.
The Sage Group reported a 9% revenue increase to £1.73bn for the nine months ending June 30, 2024. North America led with a 12% rise to £786m, driven by Sage Intacct and cloud solutions. The UKIA region saw an 8% growth to £497m, and Europe’s revenue grew 6% to £454m. Sage Business Cloud revenue surged by 16% to £1.38bn, with cloud-native revenue up 23% to £539m. Recurring revenue increased by 10% to £1.68bn, with software subscriptions up 13% to £1.4bn. CFO Jonathan Howell credited the growth to innovation and AI investment, maintaining confidence in their sustainable growth strategy.
Bishop Fleming has been named one of the best workplaces for women in 2024 by Great Place to Work. The firm, which achieved over £43m in revenue for the year ending May 31, 2024, has a balanced gender representation and supports career advancement for women. Over 50% of recent promotions were awarded to women. Initiatives like flexible working, mentorship, and leadership development have contributed to this recognition. Chair and partner Pippa Clarke emphasised the importance of diversity in driving innovation and success. Great Place to Work commended the firm for creating an inclusive environment that supports women’s career growth.
