“We are pro-auditors,” said Drury. “But a lot of things [auditors] spend weeks and weeks checking we can do automatically in cloud accounting,” he said.
Drury suggested rather than getting accounts audited to secure a bank loan; accountants could use Xero's new “assurance dashboard” and model of “continuous certification” to increase SMEs access to capital.
Drury has reeled back his enthusiasm a little after his comments drew concerned feedback from auditors. “It shows a complete misunderstanding of what the audit process involves,” said Leanne Smith, an audit partner at Australian accounting firm Intentus.
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Deloitte partners share £593m profit pool
Partners at Deloitte will share a profit pool of £593m after a surge in revenues from its consultancy business.
The profits mean that 721 partners will receive an average payout of £822,000, up almost 10% from £750,000 last year. The increase in profits was driven by a 10.5% rise in consulting revenues, with the group’s core auditing practice growing by just 0.3%.
It is the first time in three years that Deloitte partners have enjoyed an increase in the payout
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Five arrested for £1m tax evasion
Five men have been arrested in North London, on suspicion of smuggling, after an operation by HMRC to tackle an estimated £1 million tax fraud.
The men were caught unloading suspected illegal cigarettes from a vehicle at an industrial unit in the Tottenham area.
In total, HMRC officers seized 3,500,000 cigarettes and over 150,000 cans of beer and cider from the industrial units. During searches of the men’s homes and vehicles officers seized £40,000 in cash.
Anthony Swarbrick, HMRC assistant director fraud Investigation Service, said: “The criminals behind the illicit trade in alcohol and tobacco effectively steal over £3.2 billion a year from the taxpayer.”