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Accountancy Newsletter July 2022

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By Richard Highley, Julian Bubb Humfreys, Annabel Walker, Naomi Park, Kevin Hawthorn, Hannah Gregory, Rebecca Smith, Jamie Tomlinson, Francesca Muscutt & Isabel McNeile


Published 22 July 2022


DAC Beachcroft's Accountancy Newsletter features topical news and insights for our clients and contacts

Swiss Cottage Properties Limited (in liquidation) [2022] EWHC 1495 (Ch) – a reassuring result for insolvency practitioners
In Swiss Cottage Properties Limited (in liquidation) [2022], Deloitte, represented by DAC Beachcroft, successfully defended a claim for negligence, confirming insolvency office holders are entitled to rely on professional valuers when undertaking their duties and selling assets in administration.



The New Audit Reform Bill- a lawyer’s view on the implications for the audit sector

On 30 May 2022, the Government published its long-awaited road-map for reform of the audit market with core reforms defining the powers of ARGA and seeking to achieve greater accountability of big business, and addresses the dominance of the main audit firms.



Accountancy and modern slavery – is the industry doing enough?

The UK’s current legislation has long been criticised for not doing enough to ensure corporates take real steps to mitigate the risk of modern slavery taking place in their business or supply chains.  The new Modern Slavery Bill announced in the recent Queen’s Speech suggests this is all about to change.



Climate Risk: the evolving landscape for auditors
The implementation of the UK sustainability disclosure requirements (“SDR”) regime is now well underway.  The increase in compulsory climate related disclosures comes at a time where statements about green credentials and climate risk are increasingly being scrutinised by regulators, consumers, investors and activists.

Scope of an accountant’s duty of care when acting as an introducer
The decision in Knights v Townsend Harrison provides guidance regarding the scope of the duties of accountants when acting as an introducer to investments and tax schemes.


Directors not liable for breach of duty for using tax saving scheme where professional advice followed
Hunt v Richard Balfour-Lynn (and Others)
In Hunt, directors who in reliance on tax advice from a firm of accountants, arranged for a company to use an EBT, were found not in breach of duty.  The decision whilst of comfort to directors, increases the likelihood of recovery actions following failed tax saving schemes shifting back on tax advisors.

Wiseman v HMRC – a reminder of the limitations of Legal Advice Privilege in regulatory proceedings
Accountancy firms facing regulatory investigation need to be very clear about what communications and meetings are covered by privilege.  This case illustrates where the lines lie.

FRC moves towards registration of “PIE Auditors”

A key recommendation of the Kingman review was that the FRC should undertake the approval and registration of audit firms conducting PIE audits.