Good morning. HMRC are back in the news again this morning, but on the bright side, the IFAC has some good news for the profession.
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HMRC closes 170 local tax offices
HMRC is closing all 170 offices in favour of 13 regional tax offices across the country.
The Daily Telegraph reports that this restructuring will lead to ‘thousands of its 56,000 staff’ being made redundant in the long term. The move to merge the offices is part of the Chancellor’s aim to slash £80m savings from HMRC this year.
The restructuring will leave no tax office in south west England west of Bristol.
Iain Sanderson, Senior Tax manager at PwC, questioned how this restructuring will help customer service:
Is this really going to improve customer service or help close tax gap? HMRC to merge 170 offices into 13 hubs https://t.co/3KNCQH2How
— Iain Sanderson (@IainSanderson74) November 12, 2015
A HMRC spokesperson confirmed the development to Reuters, saying the overhaul "will mean fewer, but larger and more modern offices that will help us to deliver better services to our customers and bring in more tax revenue for public services".
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KPMG under the cosh from US regulators
The US Public Company Accounting Oversight Board conducts annual audit quality reviews and publishes them every year.
KPMG’s 2014 inspection report was published a few days ago and in the words of GoingConcern.com, “It’s not good.” The inspection rated 28 of the 52 audit engagements it inspected as “deficient”, with the 54% deficiency rate a significant jump from last year’s 46%.
The application of Audit Standard Number 5, covering audits that integrate with technology-based internal control systems, was a consistent problem for KPMG, particularly where the controls applied to loans and revenue recognition.
According to GoingConcern’s ratings based on other PCOAB audit inspection reports, KPMG’s deficiency rate puts it at the bottom of the Big Four league:
- Deloitte: 21%
- PwC: 29%
- EY: 36%
- KPMG: 54%.
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Accountancy linked to prosperity
The IFAC has released a report which links the accountancy profession to national economic growth and improved living standards.
The study found that global regions with a higher share of accountants in total employment have a higher per capita GDP. The Global accountancy ecology also contributes to an estimated $575bn gross value added annually to the global economy.
Fayez Choudhury, IFAC Chief Executive Officer, said, ““Professional accountants contribute to better information, reporting, measurement and decision making. When nations have a robust system to track the flow of money in government, within businesses, and between organizations, transparency and accountability are improved, organizations are strengthened, and economies are enhanced”.
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Community: CPD suggestions
AccountingWEB member query is a recently qualified chartered accountant and is searching for CPD suggestions that they can do for free. Query turned to Any Answers to ask the community what they do, and more importantly, for how many hours?
TerryD replied, saying: “we go on courses - they are not particularly fancy, in fact some are decidedly drab.”
What CPD training do you do, and what suggestions could you offer query?