WEEKLY EDITION BY MARINA MOUKA

Welcome to your latest Accountancy Age’s Weekend Digest, your go-to source for the week’s top insights and updates tailored for accountants.

◼ FRC flags “significantly short” audit standards at BDO as quality concerns overshadow its market gains.

◼ 62% of SMBs operate without accountancy support. Dext warns this disconnect could prove fatal in a downturn.

◼ ACCA says AI won’t replace accountants—but it will reward those who lead with judgement, insight, and trust.

NEWS

BDO flagged by FRC over audit quality concerns

BDO has come under sharp criticism from the Financial Reporting Council (FRC) after only half of its audits were found to meet satisfactory standards. Despite a slight improvement on last year, the regulator said BDO’s performance remains “significantly short of expectations” and placed the firm under enhanced scrutiny. As BDO increases its share of public interest entity audits, the FRC warned that quality must not be sacrificed for growth. The findings reignite concerns over audit standards in mid-tier firms, especially as broader reform efforts remain stalled.

INSIGHTS

What happens when small businesses ignore accountants

New report from Dext warns that small businesses in the UK are facing growing economic pressures without the support of external accountants. Despite 54% of SMBs saying one more cost increase could shut them down, 62% still operate without professional financial help. Many rely on manual admin, lack forward planning, and miss out on tech-driven insights. Dext CEO Sabby Gill calls the disconnect a “dangerous mismatch” that puts businesses at greater risk—highlighting the urgent need for accountants to serve as strategic partners, not just compliance providers.

INSIGHTS

The rise of the thinking accountant in an AI world

ACCA’s 2025 AI Monitor dispels fears that artificial intelligence will replace accountants, instead highlighting a shift toward strategic, judgement-driven roles. While automation is reducing routine processing, it’s also elevating the need for human oversight, client engagement, and ethical responsibility. The report outlines four defining AI trends and urges the profession to move from task execution to outcome thinking. As ACCA updates its qualifications to reflect this evolution, it argues that accountants who adapt will not only remain relevant—but help reshape the future of trusted finance.