Auditors will face growing pressure even as the economy starts to recover, one expert has predicted.
Ian Wright, director of corporate reporting at the Financial Reporting Council (FRC), explained that while the country's economic outlook is now brighter than it has been for some time, history shows that businesses will still face many problems.
He pointed out that after past recessions have come to and end, the number of insolvencies recorded has risen as businesses ran out of working capital.
Mr Wright urged auditors to remain vigilant during as the recovery gets underway.
"Whilst there are some positive economic signs we must be even more alert to the risk of error and omission [in financial reports] at this time given the risk of a rise in insolvencies over the next few months," he said.
Recently, the FRC warned that changes to the rules on audits could mean that contracts have to be renegotiated.
This would apply to any agreements which push the internal/external audit boundary, the body explained.
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