Codestone

Category: Accounting software

Financial firms found to be auditing in a manner that is not as accurate as it should be may benefit from the introduction of accounting software such as SAP Business One.

A study by the Financial Reporting Council (FRC) concluded that a number of UK arms of foreign banks are guilty of sloppy work when it comes to accountancy.

The organisation is targeting overseas-based financial firms after the collapse of Lehman Brothers, a US investment bank.

It suggested that the case highlighted the need to take an interest in the way London branches of foreign companies are dealing with their finances.

While the FRC will not name the banks it looked into, it admitted to have significant concerns regarding the use of accounting software, with cross-border loopholes one of the major causes of problems.

Last month, a report by Ovum suggested that the number of firms outsourcing accounting work is set to grow.

Posted by Lara Ward