Category Archives: News

Money laundering exposed by undercover journalists

Journalists at the London Times are to be congratulated for today, 4 December 2019, exposing a web of alleged money laundering centred on a company formations business based in London. Of course, the story was originally covered by Guardian journalist Oliver Bullough in 2016 and in his 2018 book ‘Moneyland’. The Times reported: ‘Leaked documents… Read More


EU proposes new anti-money laundering body in wake of scandals

In a recent Financial Times story, it was reported that the EU is proposing to set up a new anti-money laundering body in the wake of recent money laundering scandals. EU finance ministers are expected to meet in December and propose the setting up of a new independent body to enforce money laundering prevention measures… Read More


The hard facts about Reverse Factoring – Part 3

As we pointed out in our last two blogs here and here, Carillion was less than transparent in its 2016 financial statements about its reverse factoring arrangements.  For a much better explanation of supply chain financing (an alternative name for reverse factoring), see Note 19 ‘Trade and Other Payables’ on page 177 of the 2018… Read More


Reverse Factoring – Part 2: Watch the disclosures

Factoring in Ireland and the UK worth more than €400 billion. Last week we discussed how reverse factoring works. Now we look at how it works in a little more detail. Broadly there are two different objectives from the originator for such schemes:  1) Supplier focused – to support smaller suppliers  2) Company focused –… Read More


Do your clients use Reverse Factoring?

Some lessons for us all from the Carillion collapse. A very useful publication was issued recently by the little known Financial Reporting Council Lab called ‘Disclosures on the Sources and Uses of Cash’. Tucked away in the appendix of the publication is a very interesting explanation of reverse factoring. This financing method had a role… Read More


Big questions about Going Concern

The UK audit regulator has revealed that among the key reasons for launching an investigation into the collapse of Thomas Cook were ‘issues around going concern and goodwill impairment.’ As if on cue, the Irish audit regulator IAASA, has just issued (October 2019) a revision to the audit standard on Going Concern, called ISA 570.… Read More



The future of audit

In a rare speech, Sir Donald Brydon, chair of the Future of Audit in the UK, told a packed conference room that he is a little troubled at the current mood that ‘reaches for a shotgun aimed at auditors every time there is a corporate problem’.  Speaking at the first ICAEW Audit & Assurance Faculty… Read More


Ethical matters: Change is coming to auditing standards in Ireland

In July, the Financial Reporting Council (FRC) in London issued a consultation on proposed changes to the UK’s Ethical and Auditing Standards. It closed on September 27, 2019. The consultation is expected to introduce revisions that will see tougher regulations on audit independence and the provision of non-audit services. Any changes that are approved will… Read More


Reporting money laundering offences

The Criminal Justice (Money Laundering and Terrorist Financing) Acts, 2010 to 2018 requires firms to report suspicious transactions based on the premise that a person ‘knows, suspects or has reasonable grounds to suspect, based on information obtained in the course of carrying on business as designated person’ that another person is involved in money laundering… Read More