Regulator calls for early interventions in poor audits to help stop scandals May 6, 2020 The audit regulator today called for accountancy firms to flag poor quality audits sooner to help prevent corporate scandals. The Financial Reporting Council (FRC) said tools for spotting signs of poor quality audits should be used more effectively, following a major review of their use. Last year all of the UK’s leading accounting firms failed [...]
EY investigated over audit of scandal-hit NMC Health May 4, 2020 Regulator the Financial Reporting Council (FRC) said today it had opened an investigation into Big Four firm EY’s audit of scandal-ridden NMC Health. The audit watchdog said it was probing EY’s audit of NMC for the year ended 2018. It said the investigation, which launched on 15 April, is being carried out by its enforcement [...]
Half of top law firms had less than one month’s cash pre-coronavirus crisis May 4, 2020 More than half of the UK’s top law firms have insufficient cash on their balance sheets to cover one month’s operating expenses, according to new research. Analysis of the limited liability partnerships (LLP) accounts of 40 law firms with a combined revenue in excess of £15bn by litigation funder Augusta Ventures found 55 per cent [...]
Three lessons law firms can learn from rivals’ collapses amid coronavirus April 30, 2020 Law firm collapses are a lot like bank runs. Confidence in the institution crumbles, causing partners to rush for the exits – taking their capital and clients with them. Partner departures reduce the firm’s revenue, profit and capital, leading to further partner exits in a destructive feedback loop. Once firms enter this death spiral it [...]
Burford Capital shares jump as it predicts coronavirus litigation boom April 28, 2020 Shares in Burford Capital rose 20 per cent today as it predicted a spike in litigation in the aftermath of the coronavirus pandemic. In its annual report, Burford said: “Economic downturns produce litigation claims… [Burford] expects to see significant amounts of litigation, and meaningful demands for capital, over the next several years.” Burford also said [...]
Jury discharged due to coronavirus in fraud trial of ex-Locke Lord partner Jonathan Denton April 23, 2020 The jury in the fraud trial of Jonathan Denton – a former partner in the London office of US law firm Locke Lord – has been discharged because of fears of coronavirus. Denton, 60, was on trial alongside four other defendants facing charges of fraud by false representation. However, the 16-week trial at Birmingham Crown [...]
Law firms face ‘bloodbath’ in upcoming coronavirus recession April 23, 2020 Advisers who worked on some of the largest UK law firm collapses predict a “bloodbath” for the legal industry as a result of the coronavirus economic crisis. Andy Hosking of Quantuma, who acted as administrator to King & Wood Mallesons Europe (KWM) and Ince & Co, said: “You are going to see a bloodbath in [...]
Law and accountancy firm coronavirus partner promotions: a poisoned chalice? April 22, 2020 Law and accountancy firms have promoted swathes of new partners in recent days with many firms hailing the strong rounds as a signal of confidence in the future. But with new partners typically required to stump up £50,000 to £100,000 to join partnerships, it is a potentially risky step up for the individual during the [...]
RSM elects new chief executive as Grant Thornton cuts wages April 21, 2020 Challenger accountancy firm RSM last night elected a new chief executive after a marathon virtual general meeting while rival Grant Thornton slashed wages to help survive the coronavirus crisis. RSM announced last night shortly before midnight that former corporate finance head Rob Donaldson had claimed the top job. The Telegraph reported that Donaldson saw off [...]
Ex-EY partner wins $11m gold smuggling cover-up case against firm April 17, 2020 An ex-EY partner today triumphed in an $11m (£8.8m) claim against the Big Four firm which he accused of conniving in the cover up of gold smuggling and money laundering. Ex-EY partner Amjad Rihan sued EY after he said he was forced to flee Dubai after alleging the firm helped cover up the smuggling of [...]