PQ magazine, September 2026

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Septenber 2026

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GENDER PAY GAP GROWING The gender pay gap is alive and kicking in 2026. GAAPWeb’s latest salary report shows the sectorwide gender pay gap remains unchanged this year, with women making 21% less than men for the second consecutive year. A typical salary for a male professional is £85,900, while females average just £68,000 – a difference of £18,000. The big worry is the latest disparity freezes the progress achieved in 2024, when the gap closed to 9% (£62,500 versus £57,000). The pay imbalances become even more pronounced in senior and specialist roles. Corporate finance exhibits the widest gulf overall, with male salaries tripling those of female colleagues (£78,200 / £26,000). It is not much better for management accountants, where the gap is 33% (£72,100 / £48,600). The one bright spot is CFO positions, where women’s salaries outpace the men’s by 3% (£142,000 / £138,400). The survey also looked at accountants’ working arrangements. While 58% of respondent split their time via hybrid setups, nearly a third (28%) work entirely onsite. This is up from 25% last year, and represents more than double the remote-

only workers (13%). The need to be ‘in work’ is tied to specific operational systems, led by purchase ledger (67%) and payroll (56%). But GAAPweb found employers need to be aware that a return-tooffice (RTO) mandate would be a deal breaker for 69% of those taking part in the survey. Gen Z and Millennials prove the most resistant

to full-time office returns, with an identical 69% stating they would look for a new role elsewhere if flexibility was removed. The survey found on top of flexibility and competitive pay, solid long-term employment prospects are also important. Job security (24%) and flexible/hybrid working (23%) account for almost half of all responses, signalling an essential shift in priorities. As GAAPweb says: “In an uncertain market, a stable working environment and life-friendly working patterns win over other cultural or development perks.” GAAPweb’s commercial director, Andrew Robertson (pictured), said: “As a signatory of the HM Treasury Women in Finance Charter, GAAPweb is committed to driving transparency and equal opportunity across the sector, championing gender diversity throughout the recruitment process to our clients, candidates and employees. Our latest salary report findings show that the gender pay gap stands at 21%, a disparity mirrored by the HMT Women in Finance Charter findings, which showed female representation in senior management still sits at 37%.” There’s more insight on page 32.

ABP HEADING SOUTH ICAS is expanding access to its Accounting and Business Professional (ABP) qualification south of the border. The institute has partnered with BPP to help grow the qualification through a mix of in-person and online learning. Eligible for Level 4 apprenticeship funding, the ABP programme offers employers a cost-effective way to strengthen finance teams, build wider business capability and develop talent with minimal disruption

to day-to-day operations. For learners, it provides a flexible route to enhance their careers, either by upskilling or formalising existing expertise, while gaining a professional designation from a globally respected body. It typically takes 12-15 months to complete, and there is an option to progress to Chartered Accountant (CA) status through exemptions from the first level of the CA syllabus. Jo Preston-Taylor, Chief Financial Officer at BPP (pictured)

and an ICAS member, added: “The introduction of the ICAS ABP in England marks an important step in expanding access to professional qualifications and an exciting new chapter in our longstanding partnership. “For more than 25 years we have worked with ICAS to prepare learners in practice. This launch builds on that delivery experience, enabling more individuals and organisations to benefit from a flexible route, while maintaining the quality and rigour

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contents PQ

IN THIS ISSUE

September 2026

A note from the Editor We start each month at PQ magazine with lots of blank pieces of paper, but it is never hard to fill them with all the latest news and views from the accountancy industry. We have ICAEW, CIPFA and CIMA pass rates, of course – where else can you benchmark the pass rates of all the bodies in one place? AAT are also about to switch on its new Level 4 (you can sign up from 1 September), and there are some big changes there. But we have it covered in PQ magazine. We haven’t forgotten that you are trying to pass accountancy exams – and we take a look at bank reconciliations and double entry bookkeeping. One thing has worried me though this month – MTD. No one I have talked to seems as shocked as me about the number of landlords and self-employed who failed to get their quarterly update in on time (its half of those expected to sign up, literally 400,000 of them). It seems a massive failure on everyone’s part – HMRC, accountants and bookkeepers, the software providers, the accountancy bodies and, yes, the press too. It just feels a bit ‘emperor’s new clothes’: is someone (anyone) going to say there is a problem? Well, I am calling it out – I feel better for doing it! Graham Hambly, Editor and Publisher, PQ magazine News 4

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ACCA student jailed Banned ACCA student jailed for stealing over £300,000 from employer ICAS prizewinners Scottish institute recognises achievements of top students CIMA Class of ’26 CIMA launches GGMA Case Study Structured Success: Class of ‘26 (season 2)

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New ACCA research Eight in 10 young people want to study for a degree apprenticeship after leaving school CIMA exam results The Operational Case Study success rate fell to 66% in May. So how did the other papers go?

10 AAT exams New AAT level 4 Diploma for Professional Accounting Technicians opens for registration on 1 September 12 Tech news CCAB launches AI hub, with the aim of boosting knowledge on the ethical use of AI Features, etc 14 The PQ Digest It’s vital you speak out if you are struggling; and just how ethical are the Australian Big 4 consulting firms?

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17 Contingent assets Sean Freeland explains what a record transfer teaches accountants about valuing money you don’t yet control

18 A question for Tom Tom Clendon explains the balance sheet equation first codified by the Italian mathematician Luca Pacioli 20 Money laundering When the explanation ‘it came from savings’ just isn’t enough 22 Study advice Karen Groves explains how to approach a re-sit exam to ensure success 23 CIPFA exams How to reason your way through a Management Accounting exam question 24 Viewpoint PQ columnist Joanna Perry asks: who is your manager – a human or a bot? 25 AAT spotlight AAT set to launch the new Level 4 Diploma for Professional Accounting Technicians 26 CIMA spotlight Nasheen Wuisman explains why you should be sceptical when using AI as a study aid 28 ICB spotlight When everyone has AI, why will employers or clients choose you? 29 Back to basics Match the ‘why’ behind bank reconciliations to stop guessing which way the adjustment goes 30 Accountex Manchester Book your ticket now for accountancy’s biggest and best show in the North 31 CIMA objective test HTFT’s Matthew Evans explains how a simple three-bucket debrief turns your CIMA objective test practice into real marks 32 Salary survey We run the rule over GAAPweb’s latest salary survey – so are you getting a fair deal? 33 ACCA tips We’ve got the best tips in town for the September exam sitting 36 Apprenticeship programme New University of Exeter/ AAT partnership is reshaping accounting education

37 CIMA insights CIMA’s Rise2040 initiative can help you as you progress through your career 38 ACCA spotlight How will the newly redesigned ACCA qualification affect your progress? 40 College changes The DfE wants all college CFOs to be chartered accountants 42 The workplace Organisations need to put policies in place to mitigate the risk posed by smart glasses 43 Careers Reasons why the number of UK accountancy firms dropping so drastically; our Agony Aunt deals with another of your career conundrums; and our Book Club review 44 Fun The lighter side of life – and accountancy The columnists Rachel Harrison Use summer as a time to reflect and rebuild 4 Sunil Bhandari The accountancy ship is heading for an iceberg 6 Prem Sikka Does the UK need so many accountants? 8 Stuart Pedley-Smith You need willpower to study well, not AI 10 Rachel Harris Study tips that actually work 12

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RACHEL HARRISON Time to reflect and rebuild

Summer provides us with an important opportunity for rest and relaxation. The weeks in the run up to September also provide a perfect opportunity to reflect on your achievements in the academic year and consider what you would like to focus on in the next 12 months. Using the ‘what, why, how’ framework will help you focus your efforts: • What do you want to achieve? Focus on two or three achievable goals to keep you motivated. Do you want to pass an exam by the end of 2026? Do you want to gain a new AI skills? Articulating what you would like to achieve is the first step to getting there. • Why do you want to do it? Linking what you want to achieve to a clear reason for doing it will help you retain interest. For example, setting out to improve your work-life balance will help you to pick up a new hobby to remind you of what’s in it for you. • How will you do it? Consider what you need to do to achieve your goal. Do you need to enrol on a course by a set deadline? Do you need to find some free online study resources? Set out the tools you need from the outset so you know your goals are achievable. Set out your ‘what, why, hows’ today to keep you on the right track. Rachel Harrison is Head of Academic Support at Kaplan

Struck off ACCA student jailed A banned ACCA student, Tameri Fon, has been jailed for stealing over £300,000 from his employers DP World, a multinational port and logistics firm based in Southampton. DP World identified 13 fraudulent invoice and payment transactions made from the company account to third-party bank accounts, and suspected that these had been made by Fon, who had worked in

the accounts department at the time – July 2023 to November 2023. He was arrested at Manchester

Airport on 7 May 2025. The accounts clerk from Stoke-on-Trent has been found guilty and jailed for 32 months. Some 10 months before his arrest, Fon was removed from the ACCA student register (in July 2024) for submitting false paperwork about his exam results to an old employer and his training provider Kaplan. He told his then employer he had passed FR, when in fact he had failed. Fon was also ordered to pay ACCA’s costs of £9,331.

OpenTuition upgrade OpenTuition has a new look and is providing students with an even better study experience. The free ACCA and CIMA notes, lecturers and tutor forum are still there, but now there are better ways to stay organised, find help and study alongside other students. One of the new features is My Study Path, where students can choose the exams they

are studying and put all their resources within easy reach.

The forums should also be easier to browse and search, with paper

categories, tutor areas, and the latest discussions helping you get to the right conversation quickly. The new connect feature brings three student tools together in one place: you can find a study partner through Study Buddy, buy or sell study books in the Marketplace, or join Live Chat for quicker conversations with fellow students. Check out this great free resource at https:// opentuition.com

Built by a student, for students ACA student Josh Ness felt existing study resources were stylistically outdated and didn’t match how students learn today, so has launched his own ICAEW study app. Ness has created Charterly, in the hope of giving ACA students something fresh, modern and mobile-first to sit alongside the current material. Built for study on the go, instead of reading dense textbooks PQs get

scenario-based practice questions, AI-powered explanations, flashcards and a personal study planner. Charterly, an official ICAEW Partner in Learning, covers all six Certificate Level subjects on the Next Generation ACA syllabus – Accounting Fundamental, Assurance and Risk Fundamentals, Business Insight and Performance, Business Law, Sustainability and

Ethics, and Tax Fundamentals. After a free seven-day trial there is a monthly cost of £9.99. For more see www.study-charterly.org

that is it! Clare Finch dedicated her professional life to financial education, teaching, writing and ultimately founding HTFT, so she could do things on her own terms. For all the details click here.

Employability module at the Expertise and Strategic Professional levels. ACCA said: “These modules are a core part of the ACCA qualification and must be completed by all learners.” However, exemptions are available for the Knowledge and Expertise levels, and for the Essential Employability Module at the Knowledge level. Exemptions for exams are also available for those starting at Foundations. For more information see the ACCA Exemptions Calculator.

Finding the right course If you are looking to move quickly from PQ to NQ then you need to choose a top training provider. But which one? Well, you need to check out our Course Finder page. Select which body you want to study with and you will find our trusted providers. We only have top trainers on the list; our AAT partners include HTFT Partnership, Ideal Schools, e-Careers, Training Link, and Premier Training.

In brief Clare Finch scholarship There is still time to put your name forward for the Clare Finch Accounting Scholarship. Applications close on 31 August, with the scholarship offering full tuition support (for AAT, ACCA or CIMA), access to HTFT learning resources and support, and mentoring and guidance throughout the journey. You will asked to complete a short application form and submit a 300-word personal statement. And 4

New qualification exemptions ACCA is continuing its ‘no exemptions’ policy for the redesigned Strategic Professional exams. There will also be no exemption from the new Essential

PQ Magazine September 2026

news PQ

Recognising talent Twelve of Scotland’s leading accountancy students have received the 2026 Charles Scott Prize from ICAS. The prize recognises exceptional academic performance and potential in accountancy, with each participating university identifying one student who has excelled in their cohort. The Charles Scott Prize provides early professional recognition from ICAS for winners, opportunities to engage with an internationally respected accountancy body, expert mentorship, exposure across ICAS channels and a £150 award to support their studies. The prize forms part of ICAS’ broader commitment to championing the next generation of chartered accountants (CAs), promoting high standards in accountancy education and deepening collaboration with universities across the country. Cat Devaney, ICAS Executive Director of Learning, said:

PQ Magazine September 2026

Seven of the 2026 Charles ScottPrize winners at ICAS’ CA House, from left: Corey Neilson, Holly Shand, Marisa Todd (front), Madeleine Cruickshank (back), Arslan Hojanazarov, Phoenix Brereton and Vaila Wright. Picture by Mike Wilkinson. “Working closely with our university partners to support excellence in accountancy education is vital to ensuring talented students have the foundations to thrive as the next generation of chartered accountants. “The Charles Scott Prize is one of the ways ICAS celebrates and recognises the future leaders of our profession. We’re proud to honour these outstanding students from

across Scotland and to support their journey into the world of accountancy. Their achievements are a testament to their hard work, talent and the success of our university partnerships.” The 2026 winners are: • Pei zhu Yu, Abertay University, Dundee. • Phoenix Brereton, Edinburgh Napier University. • Marisa Todd, Glasgow Caledonian

University. • Arslan Hojanazarov, Heriot-Watt University, Edinburgh. • Madeleine Cruickshank, Robert Gordon University, Aberdeen. • Alexander Hughes, The University of Edinburgh. • Vaila Wright, University of Aberdeen. • Holly Shand, University of Dundee. • Zoe Masting, University of Glasgow. • Corey Neilson, University of Stirling. • Aimee Kerr, University of Strathclyde. • Blair Hepburn, University of the West of Scotland. This year’s winners were invited to ICAS’ CA House in Edinburgh for an exclusive event, where they gained insight into becoming a chartered accountant, explored the breadth of opportunities the ICAS qualification can offer and started to build their community within the profession. The award honours the memory of Charles Alexander Scott CA (1902–1993) and was established in his name to recognise academic excellence and the future of the profession.

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SUNIL BHANDARI No point in shuffling the deck chairs

In last month’s column I said accountancy training increasingly feels like rearranging deck chairs on the Titanic. But there is more than one iceberg ahead. First, accounting and finance is no longer graduates’ most popular career choice. Now it’s IT and software development, which are seen as more exciting and as stronger growth areas. This naturally links to the second issue: the rapid growth of AI. Much of the work once done by trainee accountants can now be handled by AI. Former Chancellor Jeremy Hunt made this point in The Times, and despite the accountancy bodies’ counterarguments I have seen no evidence that he was wrong. Many tutors also work as professional exam markers. AI marking is fast approaching, and all the major accountancy bodies are likely to explore using it for student exam scripts. It is not a question of if, but when. Finally, there is the theme of last month’s piece: the accountancy bodies’ desire to become a one-stop shop for students. Their move into low-cost online courses is likely to grow, with the cost easily absorbed into exam fees. Like King Canute, I cannot turn back the tide. Even so, I have loved – and will continue to love – being a tutor. I may be rowing against the tide, but I will keep at it for as long as I can. Sunil Bhandari is an AFM tutor at FME Learn Online

CGMA Class of ’26 returns CIMA has launched the GGMA Case Study Structured Success: Class of ‘26 (season 2) – a free, highly interactive, seven-week study and exam support programme. The Class of ’26 (season 2) is aimed at those planning to sit the November 2026 or February 2027 case study, and is designed to help candidates approach the exam with confidence. Whether you’re studying at the Operational, Management or Strategic level, this programme is designed to support candidates who:

• Need step-by-step guidance and structure. • Want to get back on track with their studies. • Struggle with procrastination or

time management. • Value peer support and networking opportunities. • Want to strengthen their study and exam techniques. The registration deadlines are: OCS: 4 September 2026; MCS: 11 September 2026; and, SCS: 18 September 2026. The deadlines apply to both the November 2026 and February 2027 exam sittings. For more information and to sign up, follow the links below based on your learning pathway: • Self-Tailored Pathway • FLP Pathway

8,200 students supported BDO is on track to provide work experience and career opportunities to more than 8,200 young people across the UK this year, as part of its commitment to improve access to accountancy. The firm has ‘significantly’ expanded its early engagement activity, with more in-person events, social mobility programmes and virtual work experience opportunities. Throughout July, BDO welcomed school, college and

university students to 12 of its offices across the UK for a series of in-person work insight sessions. By the end of the month, almost 1,000 young people took part in interactive workshops, employability skills training and networking opportunities with BDO professionals. BDO’s head of people, culture and purpose, Louise Sayers, said: “These early career experiences are crucial in helping young people understand the world of work

ICAEW exam results here The pass rates are out for the 7,844 ICAEW students who sat the June 2026 Professional level exams. Some 12,448 exams were attempted this session, with 6,326 candidates passing every paper they sat. In total, 1,682 students finished the Professional Level. In all, 4,313 students sat two papers in June, and 84.5% of these passed both, and a further 11% passing just one. That left 203 students failing both (4.7%).

and the routes available to them once they leave education. At the same time, they help build a more inclusive pipeline of future talent for the profession.” This compares with a pass rate of 75.9% for the students who sat just one paper, which left some 810 PQs (24.1%) failing the paper they were sitting. THE ICAEW PROFESSIONAL LEVEL JUNE 2026 PAPER PASS RATES NEXT GEN ACA: FCS 93.4%; ARR 92.8%; CRDA 82.5%; TCP 74.9%; BDS 84.1%; CFS 84.4%. OLD SYLLABUS: AA 68.9%; FARIFRS 53.6%; FAR – UK GAAP 100%; TC 71.3%; BPT 65.7%; BPB 73.9%; BPI 100%; BST 74.5%; FM 55.5%.

In brief Age of the human ICBs Head of Learning and Development, Vanessa Aradia, joined 12,000 delegates from 170 countries at the ITU-organised AI for Good Global Summit in Geneva this July, and returned with an unexpected message for finance professionals. “When everyone has the same tools, the technology stops being the differentiator,” she said. “The human is. There has never been a better time to invest in your skills.” Aradia explained ICB’s Future 6

Skills programme launches this September, a free monthly challenge helping members and students strengthen the human capabilities that will define the profession’s future: communication, leadership, innovation and digital confidence. Post with purpose ICAEW has reminded its students they need to keep their online presence ‘professional’. A top tip is to pause before you post – before posting you need to ask

yourself “Would I say this in front of my boss, client, or team?” If the answer is no, then you shouldn’t voice it online, either. A big no-no is disclosing confidential or sensitive information about your colleagues, employees or clients online. Another good idea is to have a regular clean-up of your social media accounts. And Google yourself, so you can see yourself as others see you! As ICAEW says: “Post with purpose, engage with intention, and

represent your best self online.” Three arrested over ‘financial irregularities’ Greater Manchester Police are questioning three people in custody as part of its investigation into alleged financial irregularities at the University of Greater Manchester between 2014 and 2025. The two men in their sixties and a woman in her fifties have been arrested on suspicion of money laundering. PQ Magazine September 2026

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Degree apprenticeships win

LORD SIKKA Do we need so many accountants?

Just how many professionally qualified accountants does the UK need? Last year the UK had around 408,000 professionally qualified accountants, the highest number per capita in the world and more than the EU nations combined. Another 155,000 students are registered with accountancy bodies. An accounting career is attractive as accountants play a leading role in the calculus of capitalism and enjoy the state guaranteed market of auditing and insolvency. The attraction of accountancy means that many other industries are deprived of graduate labour. The huge social investment in accounting has not resulted in better corporate governance, audits and financial reporting; or freedom from frauds, fiddles and tax dodges. It is hard to think of a big accounting firm that is pristine. I am reminded of the story of Sony Walkman, a portable audio player, and a must-have item in the 1980s. Its creators invested heavily in the product whilst accountants focused on the bottom line and advised against it. Entrepreneurs ignored accountants’ concerns, and a phenomenom was born. Are accounting logics dampening entrepreneurial spirits and holding the UK back? For over 30 years, the UK has languished at or near the bottom of the OECD and G7 league of investment in productive assets. The pursuit of shortterm profits has eclipsed the focus on the long term and financial engineering has triumphed over real engineering. Can accountants reset the economy? Prem Sikka is Emeritus Professor of Accounting at the University of Essex

Some eight in 10 young people in the UK want to study for a degree apprenticeship after leaving school, according to new research by Unifrog for ACCA. The idea of ‘earning and learning’ has taken root among 14-18 year-olds. The research shows striking demand for what is known as the ‘triple pathway’, roles that simultaneously offer a salary, a professional qualification and a degree. Almost all respondents (94%) said such a pathway was very or quite appealing, while nearly half (44%) said they were very likely to pursue it. That appetite is influencing

employer choices, too. Two-thirds (67%) said they would choose a lesser-known company offering a job with a qualification and degree over a well-known employer that

did not. George Tsounias, Early Careers Manager at ACCA, said: “It is very encouraging to see that the young people we spoke to for this research have a real desire for genuine, hands-on experience. “Among those drawn to combined pathways, earning money while studying was cited by a quarter (24%) as their primary motivation – that’s equal to the proportion (24%) who said gaining real-world work experience was the deciding factor.”

Time to Engage365 AICPA and CIMA are expanding Engage365, the online community platform. For CGMA Case Study students, Engage365 currently offers two dedicated communities designed to support them throughout their studies. The CGMA Case Study Candidates Community provides a space to connect with fellow students, share insights, access support from the CGMA Study Support team and build valuable relationships with peers and newly

qualified members who understand the challenges and opportunities of the CGMA journey. For those preparing for a resit, the CGMA Case Study Exam Resit Community is a private space offering tailored support, including study resources, live drop-in sessions, opportunities for self-reflection and motivation and practical tools to help rebuild confidence and prepare for the next exam. CGMA students can log in using

Grant Thorton Advisors acquires CBIZ

their aicpa-cima.com credentials or download the CIMA Engage365 app from their preferred app store. Watch this space for the new Cert BA Community and Objective Test & Level Learning communities, which are coming soon.

In the largest transaction of its kind for 25 years, Grant Thornton Advisors have acquired CBIZ for $5bn. With the help of New Mountain Capital, the all-cash deal creates the fifth-largest professional services, tax and advisory provider in the US, with the combined firm generating $5bn in revenue

Under the terms of the agreement CBIZ shareholders will receive $55 in cash per share. CBIZ, which is headquartered in Ohio, has more than 120 offices and nearly 7,000 employees. Following the acquisition of Marcum LLP (in 2024) it became the seventh-largest accountancy firm in the US by revenue. Jim Peko, CEO of Grant

Thornton Advisors, said: “By combining our multinational platform with CBIZ’s strong market presence, we’re broadening our ability to support businesses through every stage of growth – from early development to global scale. Together, we’ll bring the quality, scope and capabilities clients need to navigate an increasingly complex and rapidly evolving business environment.”

UK, said: “HMRC’s intention to help taxpayers manage their liabilities more effectively is one we support, but good intentions need workable proposals, and these fall short. Given the scale and significance of what is being proposed, we would have expected far greater development of the detail at this stage of the consultation process.”

exploring how people outside government can and have influenced the world of tax. The first episode features an interview with HMRC First Permanent Secretary and CEO, JP Marks, on his first year at the tax office and his vision for “working in the open”. These are nice and short, with the first in the series lasting under 12 minutes. Check it out here. Next up is the VAT ‘pasty scandal’ – when was the last time you ate one?

Revenue collection up 10% HMRC brought in £966.4bn in 2025/26, up from the £875.9bn it collected in the previous year. That is an increase of over £90bn (or 10.3%), and some experts suggest this has been helped by the 1,600 of additional compliance officers recruited over the past year. Plans are now in place to add a further 5,500 compliance officers. HMRC said that £50bn was brought in from money that might otherwise be lost (compliance yield).

Tax briefs HMRC’s tax shake-up ‘flawed’ The UK’s plans to overhaul how self-employed people pay income tax needs a fundamental rethink, says ACCA. The association said the proposals on implementing more timely payment in Income Tax SelfAssessment (ITSA) are basically flawed and unfair, and risk creating another damaging administrative burden for businesses. Glenn Collins, Head of Technical and Strategic Engagement, ACCA 8

New Tax Breaks podcast The CIOT and ATT have launched ‘Tax Breaks’, a podcast mini-series

PQ Magazine September 2026

news PQ

One up two down – CIMA exam results Grant Thornton

The CIMA case study pass rates are in for the May 2026 sitting, and the bad news is the

Operational Case Study success rate has fallen to 66%. For the past four sittings the pass rate has been sitting at 70% and above, and you have to go back to February 2024 to find a worse one. There was also a slip in the Management Case Study pass rates this time around, to 62%.

There is some good news, however. The Strategic Case study pass rate rose to 64%, up nine percentage points on February. You CIMA’s CGMA PASS RATES Operational

MAY26

FEB26

NOV25 AUG25 MAY25

66%

73%

70%

70%

70%

Management

62%

65%

63%

65%

60%

Strategic

64%

55%

59%

61%

53%

IAASB modernising auditing standards The International Auditing and Assurance Standards Board (IAASB) has released proposed revisions to three International Standards on Auditing (ISAs): ISA 330, The Auditor’s Responses to Assessed Risks; ISA 500, Audit Evidence; and ISA 520, Analytical Procedures. The proposed revisions, when finalised, will complete an important phase of the IAASB’s decade-long modernisation of the International Standards on Auditing, building on recent revisions, including ISA 315

have to travel back in time to November 2022 to find a better pass rate when (you may be shocked to hear) 71% passed their SCS.

(Revised 2019), Identifying and Assessing the Risks of Material Misstatement. The proposals further embed, clarify and strengthen a principles-based, risk-based audit framework. The revisions also address the increased use of technology in business, financial reporting, and auditing. Tom Seidenstein (pictured), IAASB Chair, said: “Over the

past decade, the IAASB has modernised the International Standards on Auditing to strengthen audit quality and respond to an evolving environment.” He added that, when finalised, the revised standards will further enhance a principles-based, riskbased audit framework that provides a stable foundation for high-quality audits while remaining flexible enough to support innovation as technology continues to evolve.

launches degree Grant Thornton UK has launched a new BSc Accounting and Finance (Professional) degree programme in partnership with the University of Leeds. Talent Track, a four-year degree programme, will be delivered by the University of Leeds and Grant Thorton together, combining academic excellence with practical experience. Students will benefit from multiple paid work placements, including a fullyear placement in their third year. Upon successful completion, graduates may be considered for permanent roles with Grant Thornton, including the potential for an ACA training agreement and a fast-track route to qualification. As an approved ICAEW partner offering exemptions for the ACA qualification, Leeds supports the firm’s ambition to accelerate chartered membership for graduates. The first cohort is expected to start in September 2026, with plans to expand the programme in the following years. For more information on the programme and application process click here.

The Clare Finch Accounting Scholarship HTFT has launched the Clare Finch Accounting Scholarship. Clare dedicated her professional life to financial education: teaching, writing and, ultimately, founding HTFT so she could do things on her own terms. This scholarship exists to honour that journey, to celebrate what Clare built, and to ensure that what she stood for will be remembered and passed on to future generations. The scholarship offers: • Full tuition support for the chosen qualification pathway. • Access to HTFT learning resources and support. • Mentoring and guidance throughout the journey. Applications opened on the 15 July and will close on 31 August 2026. HTFT believe talent should never be limited by financial barriers. This scholarship is designed to help an exceptional student take the next step towards a successful professional future.

For all the details go to:

https://htftpartnership.co.uk/clarefinchaccountingscholarship/ PQ Magazine September 2026

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STUART PEDLEY-SMITH

You need willpower, not AI

Willpower is often thought of as fixed – you either have it or you don’t. In reality, it’s more like a muscle, something you build through practice. Psychologists define it as resisting short-term temptation for longerterm gain. Neuroscience backs this up; the Anterior Cingulate Cortex (ACC) spots the clash between what you want now and later, then passes the decision to the rational thinking part of your brain. The more you exercise that pathway, the greater your willpower will become. Willpower plays a vital part in learning and exam success because it helps you avoid temptation and sustain your levels of motivation. Which brings us to a modern temptation – AI. Gen AI tools make it effortless to get an answer to a question or complete a task. There is, of course, real value in using AI, but when it becomes the easy option you skip the very struggle that helps you learn and remember. Pausing before you prompt is willpower in action. Here are a few ways to keep it in check: • Start small: try solving a problem without using AI. • Pause on impulses: wait five minutes when stuck on a tough question instead of asking AI for the answer. • Automate decisions: schedule dedicated ‘no-AI’ study blocks each day to make independent thinking a habit. • Reward milestones: celebrate small wins to keep your momentum strong. • Stuart Pedley-Smith is an accountancy lecturer, education advisor, author and blogger

AAT’s new Level 4 is here The new AAT level 4 Diploma for Professional Accounting Technicians opens for registration on 1 September. That means the current Level 4 closes to new registrations on 31 August. The new exams will be introduced in two waves, with the first happening on 21 September (FNAC and MNAC). More exams will then come online on 12 October (ATIC and AVBA). The new tax exam

looking at Levels 2 and 3, which will be launched in September 2028. We could get a look at what these levels look like in September 2027, or maybe before. In an exclusive

CIPFA pass rates on the rise

The latest CIPFA pass rates make good reading for many sitters. Students will be pleased to see the Strategic Case Study pass rates

are back up to 63% – they were just 48% in March. The Strategic Public Financial Management pass rates are also above 80% this

Chasing hallucinations AI detection software company GPTZero has claimed it has found a pattern of irresponsible AI usage resulting in hallucinated citations, fabricated claims and incomprehensible drafting and formatting decisions in PwC Middle East ‘thought leadership’ reports. Using its ‘Hallucination Check’

PwC fined £3.2m over audit failures The FRC has imposed a financial sanction of £3.2m and issued a severe reprimand to PwC over its audits of Babcock in FY2019 and FY2020. PwC agreed to pay Executive Counsel’s costs of the investigation. PwC audit partner John Waters also received a severe reprimand and was fined £59,062. PwC and Waters admitted serious and numerous breaches of Relevant Requirements in relation to the auditing of cash pooling; financing arrangements in relation to a specific overseas contract; capitalisation of 10

(PTAX) will be available from January 2027. All papers are compulsory; there are no options. Students must sit a tax and an audit assessment. The AAT will now be

tool, GPTZero analysed four reports published between 2024 and 2026. GPTZero’s Paul Esau explained that using its AI detector there is an 84% chance that the Transforming Governance report published in 2025 was entirely AI-generated. If the end matter (including references) is ignored,

certain costs on aircraft; an intangible asset; assessment of goodwill impairment; certain credit notes on aircraft; and two long-term contracts, across both audit years. FRC sanctions EY and Julie Carlyle EY has been fined £1.2m and been issued with a severe reprimand over its audit of Made.com for the FY21. Audit engagement partner Julie Carlyle received a sanction of £49,000 and a severe reprimand. And the respondents were also ordered to pay the cost of the investigation. EY and Carlyle have admitted breaches of the International Standards on Auditing in two areas of the audit:

interview AAT’s product director Rachel Staples said employers and training providers were heavily involved in shaping Level 4 and she wants that to continue with Levels 2 and 3. She stressed: “We want them to get involved in our early consultation because they have such fantastic insight for shaping the future.” Check out page 25 for more on the Level 4 changes.

time around, and these pass rates haven’t been that good for four sittings. The pass rate of 56.99% for Audit and Assurance is also high for this particular paper – students will remember in December last year the pass rate was just 35.97%. In all, seven papers had pass rates of 80% and over. CIPFA JUNE 2026 EXAM RESULTS: MA 43.22%; FA 85.34%; AA 56.99%; BPFM 82.43%; DSDA 70.07%; BR 49.74%; GRM 83.70%; TL (UK) 86.36%; TL (INT) 100%; IBC 55.67%; SPFM 80.57%; PSFR (UK) 68.14%; PSFR (INT) 100%; SCS 63.06% the chance increases to 100%. Over the past year, a team of GPTZero investigators has used its Hallucination Check tool to uncover hallucinated citations in government reports, academic papers submitted to prestigious machine learning/artificial intelligence conferences like ICLR and NeurIPS, and research products from three of the big four consulting firms: Deloitte, Ernst & Young, and KPMG. You can read more here.

• Going concern – failure to perform adequate procedures to assess the accuracy and reliability of management’s models. • Deferred tax asset (DTA) – failure to obtain sufficient appropriate audit evidence regarding the recoverability of the deferred tax asset. Sustainability adjustments on the up More than two-thirds (69%) of FTSE 100 companies made prior-year adjustments (PYAs) to their climate and sustainability metrics – a significant increase from 46% last year –according to an analysis by Deloitte UK. Notably, the number of companies disclosing multiple PYAs tripled to 51 companies (17 companies last year). PQ Magazine September 2026

PQ tech the news

RACHEL HARRIS Study tips that actually work September is the fresh start that many of our brains are wired towards from our school days. So before you open your first textbook, here's how to study in a way that sticks. Test yourself before you feel ready: the single biggest mistake many students make is re-reading notes until they feel familiar. Familiarity isn’t knowledge; close the book and try to recall it cold. Better still, attempt questions before you think you can. Space it out, don’t cram: an hour today and an hour next week beats two hours tonight. Your brain consolidates learning in the gaps so schedule short, regular sessions rather than heroic weekend marathons that you forget by Tuesday. Do past questions under exam conditions: not with your notes open, not with the answer halfvisible. Accountancy exams reward applying knowledge under time pressure, and the only way to get good at that is to practise it, stopwatch running. Understand it, don't memorise it: anyone can learn a double-entry rule by rote. The students who pass understand why the entry works. When you hit something confusing, chase the why rather than papering over it. Look after the machine: sleep, movement and a bit of daylight do more for your recall than a fourth coffee at midnight. Tired brains don’t retain. Study smart, not just hard. Your future qualified self will thank you! Rachel Harris is the founder of striveX and @accountant_she

CCAB launches AI Hub The Consultative Committee of Accountancy Bodies (CCAB) – a combined group of five accounting bodies – has launched a new AI hub, aiming to boost knowledge on the ethical use of AI. With AI now used widely across the profession, the AI hub aims to pool together guidance, checklists, podcasts and resources, all in one place. The podcasts cover a range of topics, from the effect of AI on culture to whether you should trust a ‘bot’ with the big decisions. The CCAB brings together

ICAEW, ACCA, ICAS, CIPFA and Chartered Accountants Ireland, representing over 285,000 professional accountants in the

UK and Republic of Ireland, and over half-a-million professionals worldwide. These bodies work together in the public interest on matters affecting the profession and wider economy. The CCAB Ethics group has also produced a draft Statement to the Profession on the Ethical Use of Artificial Intelligence, and six case studies, illustrating how the codes of ethics can be applied by accountants facing dilemmas when using AI technologies. The draft statement and the case studies, and the responses to them, will be discussed at an online event on 25 September 2026.

EY boosts quantum capacity EY has announced the expansion of its global quantum computing capabilities, with the addition of an on-site quantum computer led by EY Canada. This is part of the EY’s global investment of more than $3bn in AI and other next frontier technologies. Raj Sharma, EY Global Managing Partner – Growth & Innovation (pictured), said: “AI may be the defining technology platform of

this decade, and quantum will ultimately expand its horizons, creating entirely new opportunities for business and society. EY has already taken great strides in applying the power of quantum to cybersecurity and specific industry use cases. As the technology reaches its full potential over the next five years, it’s critical for global business leaders seeking competitive advantage to hone their data readiness and build

AI investment hits record

strong foundations of data, trust and governance in preparedness for the quantum age.”

AI accounted for 57% of all UK equity investment by value in April, May and June, says new data from Beauhurst. Equity fundraising worth £4.56bn

has been tracked for the second quarter of the year, 4.1% more than in the first quarter and nearly three times more than in the same period of 2025 (an increase of 186.8%).

The figure makes Q2 2026 the strongest quarter on record for UK AI investment by amount raised, surpassing the previous high of £4.38bn in Q1 2026, with almost three times the amount invested in the second quarter of 2025 (£1.59bn). Henry Whorwood, Managing Director of Beauhurst Insights, said: “The headline figure is already a record, but it is unlikely to be the final number. Unannounced fundraising deals often come to light in the weeks and months after a quarter closes, so we expect the Q2 picture to continue developing.”

industry’s talent crisis. Firms said they also face practical challenges when it comes to adopting AI. Some 17% cite concerns around data security, privacy or client confidentiality, and 16% say they lack the internal skills needed to implement AI tools effectively.

Payments is a fully integrated payment solution that enables businesses and advisers to manage, approve and make supplier invoice, employee expenses and payroll payments directly within Dext. Sabby Gill, CEO of Dext, said: “QuickBooks Online is one of the most widely used accounting platforms amongst UK businesses and practices, and bringing Dext Payments to them is a significant step in making our end-to-end payments workflow accessible to as many people as possible.”

AI uncertainty affecting deals Despite a reasonably strong start to the year, private equity deal activity declined significantly in Q2 2026, leaving first-half volumes 3.4% lower than the same period last year. While the uncertainty caused by the conflict in Iran put the brakes on activity, concerns around the wider impact of AI across many sectors was also a contributing factor for the slowdown, according to KPMG UK’s mid-year Private.

Tech briefs AI ‘overhyped’ Accountancy firms remain reluctant to embrace AI despite facing growing capacity pressures and ambitious growth plans, according to a new survey by Advancetrack. The research showed just 16% of firms are actively investing in AI, despite 73% saying they expected to grow in the next 12 months. UK firms are the most sceptical about AI (this was a global survey), with more than one in five saying AI is over-hyped as a solution to the 12

Dext Payments comes to Quickbooks Online Dext Payments is now available to QuickBooks Online users in the UK. Already available on Xero, Dext

PQ Magazine September 2026

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PQ in the news

THE PQ DIGEST Each month we look at the accountancy stories that have made waves on social media

SPEAK OUT IF YOU ARE STRUGGLING A

aron Westgate, Deputy-director, ICAEWPwC Flying Start programme at QMUL: “I nearly quit my first accounting role within the first three months. I was completely unprepared for some aspects: • Feeling completely out of my depth in technical knowledge. • Getting review comments asking why I had done the testing when I had been told to follow last year. • Not knowing when/how to say I was struggling. • Struggling with competing demands from my previous client and new client (things slip when there’s delays with clients, testing, etc.). • Living alone for the first time and maxing out my overdraft every month. • Dealing with some tricky people (internally and clients). The turning point was in December when I sent a long email to a manager to admit I was really struggling. They spent the time to explain things I ‘thought’ I should know by now,

QUOTE OF THE MONTH: “If you ask for help and it is dismissed (I was by a manager), ask someone else you trust.”

explained what I needed to do next and even apologised as they were so busy they should have taken more time with me. Christmas was a complete refresh and January was much less gloomy now things started to click.

Tough conversation but it should never have got to that point: • Speak up early. • Don't be embarrassed to ask for help. • If you ask for help and it is dismissed (I was by a manager), ask someone else you trust.”

THE MOST ETHICAL ACCOUNTANTS? Toby York, Accounting Café: “Are the Australian Big 4 consulting firms the most ethical in the world? According to a report in today’s FT: • Two EY staff allegedly accessed the Australian prime minister’s banking details illegally. • Several KPMG partners failed to adequately investigate a whistleblower’s claims that senior audit staff accessed confidential client data to win new business. • A PwC tax partner leaked confidential government data to colleagues who used it to

try to win new contracts. Three significant incidents across three different firms, but… The EY staff have been charged. The KPMG partners, including the chair and chief executive, have left. PwC replaced its top management. On this evidence, it appears that unethical behaviour is investigated and rooted out. Maybe we should be worried about firms not reporting these types of issue on a regular basis.”

YOUR PQ MAGAZINE Free subscription: www.pqmagazine.com/subscribe/ Delivery problems or need a change of email address: admin@pqmagazine.com Website: www.pqmagazine.com 14

Editor: Graham Hambly Email: graham@pqmagazine.com Associate editor: Adam Riches Art editor: Tim Parker Origination: Classified Central Media

Phone: 07765 386489 Address: PQ Publishing Limited, 4 Dangan Road, London E11 2RF Copyright: PQ Publishing 2026 PQ Magazine September 2026

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contingent assets PQ

One player, four numbers Sean Freeland explains what a record transfer teaches accountants about valuing money you don’t yet control

A

Championship club stands to be paid for a player it sold more than two years ago. It did not train him this season. It will not field him again. Yet a slice of the fee is reported to be heading back to Middlesbrough, a windfall put by some outlets at around £20m. That is a striking number. But it is worth slowing down on, because it is not quite the number it looks like, and the gap between what is reported and what is real is a distinction accountants use every day. Here is the chain, as reported. Morgan Rogers left West Bromwich Albion for Manchester City in 2019, for a fee reported at around £4m. City sold him to Middlesbrough in 2023 for a reported £1m to £1.5m. Middlesbrough sold him to Aston Villa in early 2024 for a reported £8m, rising towards £15m with addons. And in the summer of 2026, Aston Villa sold him to Chelsea for a reported £117m, described as a British record. When a club transfers a player it can add a ‘sell-on’ clause: the right to a share of whatever the buying club later sells him for. Middlesbrough is reported to have kept one. So the very large Chelsea fee flows back down the chain, and Middlesbrough is owed a share. Now look closely, because four different numbers are hiding in that story, and only one of them is money. The first is the headline: £117m, the figure everyone quotes. The second is what Middlesbrough is actually owed, which is not a share of the £117m but a share of Villa’s profit on the deal – a smaller number, and, if the reported structure is right, one that comes out in the region already being cited. The third is the cash Middlesbrough has actually received so far, which is little: a fee like this is paid over several years, so the money arrives in instalments. And part of Middlesbrough’s share may be owed further up the chain to Manchester City. The fourth is the amount a club in that position could recognise under the accounting rules, and that follows its own logic, which we will come to. Same event, four numbers. Headline, entitlement, cash, and the amount you can

PQ Magazine September 2026

actually recognise. Casual reporting blurs them into one. An accountant’s job is to keep them apart. The right to a sell-on is what the profession calls a contingent asset: money you might receive, if something outside your control happens first. The general rule is careful. You do not put such an asset in your accounts while it is merely possible. When the money becomes probable, you disclose it in the notes, telling the reader it may be coming. Only when it is virtually certain, once the deal is signed and binding, do you recognise it as income. The principle sits in the reporting standards on contingent assets. The same instinct runs through how we treat any uncertain, variable amount: do not count it as earned before it is. This is general information, not accounting or legal advice. The reason is exactly the Middlesbrough situation. A windfall you are owed, that arrives over years, and that you may have to share, is not cash in hand. Treating it as cash is how trouble starts. There is a second club worth watching, because it shows the other side. Real Madrid has

made this a deliberate strategy. It sells promising young players and keeps not just a sell-on but, often, a buy-back: the right to re-sign the player later at a fixed price set in advance. One example is the midfielder Nico Paz, sold to the Italian club Como. Real Madrid is reported to have kept a fixed buy-back, a little under €10m in 2026 and a little more the year after, a 50% sell-on, and the right to match any offer. Reports now value the player anywhere from €60m to €120m. Notice what that valuation is, and what is not. It is not money. Real Madrid has not sold him again, so it is owed nothing, and records nothing, however large the number in the newspapers. What it holds is an option. And here is the distinction that matters: a buy-back is a right Real Madrid controls, because it decides whether to use it. A sell-on is a right it does not control, because someone else has to choose to sell first. Two rights over the same player, and one is worth far more than the other, because you can act on it. That is the transferable habit, and it is older than any transfer record. When a figure reaches your desk, a windfall, a forecast, a claim you expect to win, an earn-out on a deal, do not ask only how big it is. Ask on what basis it is calculated, over what timeframe it might arrive, and how much of it is within your control. A large number you cannot influence and cannot yet count is not the same as cash, and saying so plainly is a large part of the work. It is also the difference between a student who writes ‘this was good business’ and one who asks: good for whom, and over what period? The Chelsea fee is excellent news for Aston Villa’s cash position. Middlesbrough’s share is real, but smaller, later, and partly owed elsewhere. Both things are true at once. Deciding which one you mean is the whole of the judgement. In time another transfer record will replace this one. The question underneath it will not change. Where did this number come from, when will it arrive, and how much of it do I actually control? Answer that, and you have valued it. Skip it, and you have only quoted it. • Sean Freeland is a specialist SBL tutor and is a module leader on the PwC Flying Start programme at Queen Mary University of London

17

PQ double-entry bookkeeping

A question for Tom Tom Clendon explains the balance sheet equation first codified by the Italian mathematician Luca Pacioli (pictured!)

The question Can you explain me to how double-entry bookkeeping works? Tom’s answer Of course I can – because whether you have just started studying accounting or whether you are about to sit your finals it is always useful to know your debits from your credits. This is because all financial transactions can be boiled down and explained in these terms. In a complex world, double-entry bookkeeping is refreshingly binary and straightforward. For double-entry bookkeeping is nothing more than the application of rules, which is why it is so easily computerised. There is no room for judgement or subjectivity in applying the double entry rules. So, in a strange way, please don’t try too hard to understand this aspect of accounting because it really is all about the accepting and applying these rules. The five elements In financial accounting five elements have been identified. Three of these elements will be reported in the statement of financial position. These are assets (resources that are controlled, e.g. land); liabilities (obligations, e.g. trade payables); and equity (sometimes called capital – this is the ownership interest, and examples include share capital and retained earnings). Two elements are found in the statement of profit or loss. These are income (e.g. revenue from selling goods and services) and expenses (e.g. rent and wages). The duality rule The duality rule states that for every single transaction there are always two effects on the elements. For example, when a business pays rent there is an increase in the element of expense that will be recorded in the rent account AND a reduction in the element of asset that will be recorded in the cash at bank account. The one debit/one credit rule When a transaction is being recorded, one effect will always be recorded as a debit and the other effect will be recorded as a credit. Debits are traditionally considered first and appear on the left-hand side of an account. Credit entries are written up on the right-hand side. There are two ways to remember when to debit and when to credit. One way is by reference to this table.

which represent a reduction in the equity due to payments being made to the owners. The second C stands for capital – which is another name for equity. Debits

Credits

Expenses

Liabilities

Assets

Income

Drawings

Capital

Debits and credits examples Question: What is the double entry when the business takes out a $20,000 loan? Answer: Being aware of duality means that the money received will result in an increase in the element of asset – specifically the cash at bank account; but that, in addition, as there is an obligation to repay the loan there will be an increase in the element of liability and a loan account. An increase in an asset is the debit and the increase in the liability is the credit. By convention this is often summarised in a journal form as follows.

Increase

Decrease

Asset

Debit

Credit

Debit

Cash at Bank account

Expenses

Debit

Credit

Credit

Loan account

Liabilities

Credit

Debit

Income

Credit

Debit

Equity

Credit

Debit

So, let’s go back to that example of the business paying rent. Here, one effect is the increase in the element of expense, and this is a debit in the rent account. Whilst the other effect is a reduction in the element of asset that will be recorded as a credit in the cash at bank account. DEAD CLIC The other way is to recall the mnemonic DEAD CLIC, which identifies when to increase an account. The second D stands for drawings (or dividends) 18

$20,000 $20,000

Question: What is the double entry when a trade receivable for $800 goes bankrupt and the debt has to be written off as irrecoverable? Answer: Being aware of duality means that recognising a bad debt increases the expense of bad debts and it will also result in a decrease in the element of asset, the receivable account. An increase in an expense is the debit and the decrease in the asset is the credit. Accordingly, the journal entry for writing off a debt as bad is as follows Debit

Bad debt account

Credit

Receivables account

$800 $800

• Tom Clendon is an online lecturer helping students pass their ACCA exams. See www.tomclendon.co.uk PQ Magazine September 2026

PQ money laundering

When ‘it came from savings’ isn’t enough

Source of funds and source of wealth are not interchangeable AML phrases. Knowing the difference is a judgement every accountant must learn, writes Lisa Simms

Y

our client produces a bank statement showing £75,000 arriving the day before the transaction. Have you established the source of funds? Not necessarily. You may only know where the money was immediately before payment. If it came from another account, company or relative, the real question has simply moved one step backwards. That matters because criminal money rarely announces itself. By the time it appears in a set of books, a director’s loan account or a business purchase, it may look routine. The National Crime Agency estimates that more than £100 billion is laundered through or within the UK each year, and the 2025 National Risk Assessment still rates the money-laundering risk for accountancy service providers as high. Accountants can be attractive to criminals because our work may give transactions and businesses an appearance of legitimacy. Two questions Source of funds is the origin of the particular money involved in a transaction or business relationship. Where did this money come from? Source of wealth is the origin of the client’s overall assets: how they accumulated their wealth. How did this person become wealthy? Suppose a client pays £100,000 into a company after selling a buy-to-let property. The source of funds may be the sale proceeds. Completion documents, proof of ownership and a matching bank receipt could establish that. Source of wealth goes further. How did the client acquire the property and their other assets – through employment, a business, inheritance or investments? A completion statement proves a sale; it does not necessarily explain the wealth behind the asset. The reverse is also true. A client may have a credible history of substantial wealth, but that does not establish the source of a particular payment. It could have come from an undisclosed third party or unexplained overseas entity. Two common mistakes follow. ‘It came from my bank account’ identifies the route, not the origin. A schedule of assets shows what a client owns, not how the wealth was created. For day-to-day purposes, think of establishing as obtaining and understanding the client’s explanation. Verifying means testing it against sufficiently reliable evidence, including

20

independent sources where risk requires them. The risk-based approach determines how far that verification should go. A dial, not a switch A risk-based approach does not mean checking every client identically, or accepting every explanation from someone labelled ‘low risk’. Nor does every ordinary engagement require a forensic source-of-funds investigation on day one. It means adjusting the depth of enquiry and strength of corroboration to the risk presented. In a genuinely lower-risk case, the explanation may be commercially sensible and already supported by reliable information held by the firm. Little additional documentation may be proportionate under the firm’s policies, controls and procedures. In a higher-risk case, obtain more detail, use independent and reliable sources, consider both source of funds and source of wealth, and increase monitoring where appropriate. Some cases carry specific requirements. For a politically exposed person (PEP) relationship, enhanced due diligence includes adequate measures to establish source of wealth and source of funds; the depth should still vary with the risk attached to the individual. Low risk is not an exemption from customer due diligence. Equally, more paperwork is not automatically better AML. The objective is evidence-based judgement: concentrate the greatest effort on the greatest risk and record

why the work was sufficient. Risk is dynamic. A client assessed as ordinary at onboarding may look different six months later when an unexpected capital injection, overseas shareholder or unexplained trading pattern appears. Size is relevant, but there is no safe minimum: a small unexplained payment can still be criminal property. Clients’ words and evidence A client’s account is useful information, but it is a starting point rather than proof. A practical source check is a three-way match: 1. The story – what the client says happened. 2. The evidence – what reliable documents and data show. 3. The financial reality – whether it fits what you know about the client and transaction. Move to stronger verification when those elements do not align. Warning signs include an amount outside the client’s normal scale; money routed through third parties or several accounts; an unexpected overseas entity; no obvious commercial purpose; cash-intensive activity; opaque ownership; a lifestyle inconsistent with known income; changing explanations; urgency or secrecy; and reluctance to provide reasonable information. One red flag does not prove money laundering. It tells you to ask the next question. Asking for evidence Avoid requesting the same documents in every case. Match the evidence to the explanation. PQ Magazine September 2026

money laundering PQ For savings, statements should show the balance building over time and, where needed, connect it to credible income. For an asset sale, consider the contract or completion statement, ownership and receipt of proceeds. For a loan, examine the agreement, lender, drawdown and commercial rationale. For inheritance, probate or estate records may be appropriate. For dividends or business profits, accounts, tax records, dividend documents and bank entries should tell one story. A ‘gift’ does not end the enquiry; it may transfer it to the donor. Depending on risk, you may need to understand who the donor is, why the gift was made and how the donor obtained the money. The test is not whether a document has been supplied. It is whether the evidence demonstrates the claimed origin, amount, timing and parties – and fits the wider picture. Three situations, three responses 1. The business van An established plumbing company with £450,000 turnover buys a £24,000 van from its known trading account. The purchase fits its business, cash flow and previous activity. Checking the payment against the books and understanding whether it came from trading receipts or ordinary finance may be enough. A five-year personal wealth history would add burden without addressing a real risk. 2. The savings that arrived yesterday A director introduces £80,000 as ‘personal

PQ Magazine September 2026

savings’. The statement supplied shows one recent transfer from a newly formed overseas company with no known connection to the client. It proves movement, not source. You need to understand the company, its beneficial owner, the reason for payment and the activity that generated the money. Source of wealth may also need examination. If the client becomes evasive, the risk rises. 3. The apparently wealthy client A new client on a modest declared salary asks the firm to create a property company to acquire a £1.2 million asset using a gift from a family trust overseas. There may be a legitimate explanation. But the size, structure, overseas connection and mismatch with known income justify stronger corroboration: the trust and its beneficial ownership, the donor’s relationship, the origin of the family wealth, the payment trail and the structure’s commercial purpose. Professional scepticism means testing the explanation without treating unusual wealth, nationality or age as proof of wrongdoing. Beware inconsistencies An inconsistency is not automatically a suspicious activity report. Ask normal, neutral questions within the scope of your work and allow a reasonable opportunity for clarification. Do not explain away contradictions because the client is longstanding, charming or commercially important. In 2024, accountant Bilal Farooq was

sentenced to two years’ imprisonment after helping a drug dealer launder £190,000 through his personal account and companies he had established. The UK’s 2025 National Risk Assessment records that his barrister accepted he had ‘turned a blind eye’ to the source of the funds. Deliberate blindness is not professional scepticism. Once you know or suspect money laundering – or have reasonable grounds for either – follow your firm’s procedure and report promptly to the MLRO. Do not tell the client that a report has been made or say anything likely to prejudice an investigation. The MLRO will decide whether an external SAR is required and whether a Defence Against Money Laundering request is needed for a particular act. A SAR does not, by itself, mean every piece of work must stop. Finally, document the decision, not just the documents. Record the explanation, risk factors, evidence examined, inconsistencies resolved, conclusion and any escalation. Bank statements without recorded reasoning do not show how professional judgement was exercised. Accountants are not expected to prove every client innocent. They are expected to notice when the numbers and the story no longer match, ask the next sensible question, and explain why the answer was – or was not – good enough. Follow the money – and always follow the story behind it. • Lisa Simms, Managing Director, AMLCC

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PQ study advice

I’ve failed my exam – what next? Karen Groves explains how to approach a re-sit exam to ensure success

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aking exams is never easy – life has a bad habit of getting in the way when we least need it to, throwing curveballs at us. That is on top of long working hours, and children and family commitments before we start. So, you have taken an exam and failed, and wonder what to do next. Some students I have seen over the years re-book their exams as quickly as possible, whilst for others it can throw them offtrack and make them question whether to continue. My advice is simple: do not be defeated, pick yourself up, dust off your study books and start revising again – and have confidence that you can do this. How do I know, I hear you ask? Well, after taking one of my ACCA exams five times (yes, I know, it was for me, the worst unit ever), having a two-year ‘sulk’ after the first attempt as I hated it that much, I then had to pick myself up and start the unit again. Believe me, the two-year gap made it worse too. As my Dad said after I finally passed my ACCA exams and received my certificate, “there’s lots of hard work in that piece of paper but even more sheer stubbornness and a refusal to give in”. I think that pretty much sums it up. I often say to students, you must ‘want’ to achieve and pass the exams. If your heart is not in it, then you will

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not do well. I also say to my students ‘try and fail, but don’t fail to try’ (a quote by John Quincy Adams). I have based my approach on AAT exams for this article and will consider what you should do next. As a student you will have different study resources depending on your method of study and training provider; however, you all have one thing in common, in that you all have access to the AAT Lifelong Learning portal.

Students studying ACCA, CIMA, ICAEW will have comparable study resources available and should adopt a similar approach. Over my many years of teaching I have witnessed some students not even working through the AAT practice assessments prior to taking their exam. I view this as pretty much the same as taking a driving test with no lessons; how on earth do you know what to expect, the format and layout? You can practise as much as you like with other resources that will all be great, however until you work the AAT practice assessments you do not know what to expect in the actual exam, layout wise. The other mistake students make is just clicking on ‘submit’ once they have finished the AAT practice assessments. For the current Q2022 syllabus you will then receive marks per task for the computer marked tasks, but the system will not mark the written tasks. So, you have a purely computer-marked assessment and have achieved 80% overall, which is good news. But what about the remaining 20% of marks lost? Well, unless you check your answers BEFORE you click submit, or screenshot your answers and check afterwards, you will never know. For the written tasks that are human marked you will need to check these yourself against the model answers provided. Personally, I would like to know where I have gone wrong so I can make notes and go back over revision, and I’m sure you would too. The AAT practice assessments will also ensure you are ready for the exam from a time management point of view. Each exam is timed and whilst working on other revision papers and questions is important, you are not timing yourself here. The practice assessments are important as they give you a feel of what the exam will be like – it will time you the same as in the real exam. My other advice would be to read the examiners’ reports carefully. Where are other students making mistakes, what are the weak areas in a unit? Then go back over these to ensure you are confident. Finally, don’t forget to use the other AAT resources including the green light tests and e-learning. • Karen Groves is an AAT tutor and Faculty Director – Accounting at e-Careers

PQ Magazine September 2026

CIPFA exams PQ

Develop your reasoning skills Matthew Davies explains how you can reason your way through a Management Accounting exam question

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hroughout the CIPFA qualification students are expected to use reasoning skills to pass certain exam questions. Reasoning on scenario questions is particularly important in the new Management Accounting exam. Since June 2026, the Management Accounting exam has 25 multiple choice questions worth two marks each, seven objective questions worth five marks each and a 15-mark computational scenario-based question. If students rely solely on knowledge-based learning they will not be prepared for the longer computational scenario-based question. By developing reasoning skills during the management accounting course students will not only benefit in that exam, but it will also help with more challenging exams ahead. Reasoning skills will also help students to be more effective in the workplace. We will now consider an example of how to use reasoning skills in a management accounting situation. Worked example: Bond Furniture Bond Furniture manufactures three different types of chairs; Princess, Duchess and Queen. The budgeted sales quantities of each type of chair (in units) for January, February and March are as follows: Princess

Duchess

Queen

January

25,000

14,000

10,000

February

30,000

16,800

12,000

March

33,000

18,480

13,200

Each type of chair is manufactured using different amounts of velvet, which costs £4.80 per m2. An extract of the cost data is as follows:

goods. Once a student knows how to approach a question, usually they score well in an exam. Students who fail to reason on a question like this often get few or even zero marks. Here is the step-by-step solution: 1 Calculate the budgeted number of chairs produced. (Sales – opening inventory of finished goods + closing inventory) Princess

Duchess

Queen

(3,000)

(1,680)

(1,200)

Princess

Duchess

Queen

£0.96

£1.20

£1.92

Opening inventory (10% of February sales)

Inventory policy Closing inventory of finished goods each month is budgeted at 10% of the following month’s budgeted sales volume. Closing inventory of velvet will be set to 1,000 m2 at the end of January and 1,200 m2 at the end of February.

February sales

30,000

16,800

12,000

Closing inventory (10% of March sales)

3,300

1,848

1,320

Budgeted number of chairs produced

30,300

16,968

12,120

Velvet cost per chair

Requirement: calculate the budgeted purchase cost for velvet in February To solve this problem, students will need to establish the requirements and then work backwards to a starting point. To calculate the budgeted purchase cost students will need to establish the amount used in production and adjust for velvet inventory. However, before they can calculate this they will first need to calculate the number of chairs that will be produced in February and adjust for inventory of finished PQ Magazine September 2026

2

M per chair (cost per chair/£4.80)

Princess

Duchess

Queen

Budgeted number of chairs produced

30,300

16,968

12,120

M2 per chair

0.2m2

0.25m2

0.4m2

Total m2 required

6,060

4,242

4,848

Total m2 required for production: 6,060 + 4,242 + 4 848 = 15,150 4 Calculate the total purchased m2 amount of velvet (production requirement – opening inventory + closing inventory) Velvet inventory amounts given in scenario 15,150 – 1,000 + 1,200 = 15,350m2

2 Calculate the m2 amount of velvet required to produce each type of chair (Velvet cost per chair/cost per m2)

Velvet Cost per chair

chairs (Budgeted number of chairs x m2 per chair)

Princess

Duchess

Queen

£0.96

£1.20

£1.92

2

2

0.4m2

0.2m

0.25m

3 Calculate the total m2 amount of velvet required to produce budgeted number of

5 Calculate the budgeted purchase cost for velvet (Total m2 purchased amount x cost per m2) 15,350m2 x £4.80 = £73,680 To improve reasoning skills, it is important to review an exercise after completing it. Students do well to ask themselves why that particular calculation was needed and why it was done in that order. By completing and then reflecting on completed exercises students can improve the essential skill of reasoning. • Matthew Davies is an expert in public sector financial management 23

PQ viewpoint

Don’t skip the hard yards PQ columnist Joanna Perry asks: who is your manager – a human or a bot?

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very generation has leaned on a shortcut. This one just happens to be fluent, tireless, and available at 2am on a Sunday. At first it looks like pure leverage. Problem arises, ask the bot, save an hour, get back to work. It feels efficient. It feels smart. Here’s what solving a problem used to look like for a junior accountant. Problem arrives, you sit with it, you feel a bit stupid for a minute, you go back and read through all the context, understand prior year workings, re-read the rules, weigh two or three ways it could go, maybe get it wrong at first, then you land on something, and you take that to your manager to ask the question. Your manager got to see your judgement and give you guidance. Even the half-formed analysis, every wrong turn you talked through out loud, was proof of how you think and gave you an opportunity to build trust with your manager. Now, for a lot of junior accountants, this workflow looks different. Problem arrives, straight into the chatbot, answer comes back confident and already half-written. Straight back out to the

manager, barely touched by a human mind on the way through. The struggle is skipped. And the struggle was the evidence. Some 47% of Gen Z now say they get better guidance from their chatbot than from their own manager (TalentLMS). Read that stat as a competence story and you’ll miss the point. It’s not that the bot is smarter than the manager. It’s that the manager has stopped being able to see the junior think and a relationship built on invisible judgement doesn’t build trust, it just

builds distance. Judgement has always been built cumulatively, in hundreds of small, slightly uncomfortable reps, each one a thread of connection to the people around you. Every time your manager pushes back on your first answer, or the senior asks ‘why’ one more time than feels comfortable, it’s doing two jobs at once: sharpening your thinking, and giving them something to trust. Skip the reps and you’re not just undertraining your judgement. You’re going missing from the one process that lets someone else vouch for you. Having the manager who advocates for you in a room you’re not in, who hands you a more complex client file, who gives you the hard feedback only because they’re invested. None of that gets built on a polished answer. It gets built on watching someone wrestle with an unfinished one. The accountants who keep choosing that slower, harder human path are building the one thing AI can’t hand them: a track record someone else witnessed. Use the chatbot for the answer. Go to your manager for the tension. That tension, uncomfortable as it is, is where the best years of a career actually get built.

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AAT spotlight PQ

Revised Level 4 unit is coming

The skills that employers need are changing, and we have built the qualification to answer their cries, writes AAT’s Rachel Staples (pictured)

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sk someone what an accountant does and they will probably mention maths, economics and calculations. While those skills remain essential, they absolutely are not the full picture of the work our members and students do day to day. The accountant’s role has changed more than ever, with many wearing multiple hats to keep the wheels turning for businesses. They communicate insights to colleagues and clients and support decisions that drive growth. Increasingly, they are also expected to be commercially aware and able to adopt new digital tools such as AI and software platforms. Employers have recognised this shift; our research has found that 72% believe that financial skills now need to be combined with digital capabilities, while more than 84% of all UK employers report barriers to upskilling their workforce. It is undeniably clear that finance professionals need a wider range of skills to be job ready. Skills that matter most But if the expectations placed on accounting professionals are changing, qualifications must

evolve, too. That is exactly why AAT is launching the new Level 4 Diploma for Professional Accounting Technicians (L4PAT), with registrations and first teaching opening on 1 September 2026. Developed with employers and informed by training providers, the qualification is designed to equip learners with the knowledge and power skills employers increasingly need. Alongside core technical subjects, six themes are embedded throughout the qualification: regulation; sustainability; digital innovation; communication; ethics; and equity, diversity, inclusion and belonging (EDIB). Reflecting the changing role of the accountant, the updated qualification removes optional units, meaning that all learners now build the same core skills, including mandatory audit and tax, giving employers confidence that all cohorts share a consistent foundation of knowledge. This was implemented to make sure that L4PAT reflects the reality of today’s finance roles and

provides our students with best head start to their next stage, whether it’s a new role, starting their own business or strengthening their skills. Preparing for the future With the first assessments available from 21 September, students will soon be able to begin their journey through the qualification. Further assessments will follow throughout October, ensuring the qualification is readily available to those looking to develop the higher-level skills employers increasingly demand. Transitional arrangements are in place for current Level 4 Diploma students, with new registrations closing on 31 August 2026 and assessments available until July 2028. Learners can transfer to the new structure for a £50 administration fee. To find out more information about AAT’s Level 4 Diploma for Professional Accounting Technicians (L4PAT) click here. • Rachel Staples is AAT Director of Product

Meet Tom Clendon ‘My passion is to help ACCA students pass their SBR exam, but you may not know that I was an ACCA student once. I know the pressures of juggling work, life and study. When I left school I went straight into the workplace. But, aged 22, I married Jenny and that made me realise I needed a career and a profession, not just a school leaver’s job. So, with no exemptions and minimal support from my employers, I studied for ACCA. It was not easy, but it was worth it. Becoming an ACCA member changed my life. It has enabled me to earn a living to provide for my family, live and work abroad, change my career from being in practice to education and, eight years ago, start my own online business. I am now a wholly independent ACCA SBR online lecturer, offering platinum courses (tuition and revision) and stand-alone revision courses to individuals who choose to study with me. I am passionate about breaking it down, keeping it simple and getting students over the line. Marking is dear to my heart. I share my knowledge by being active on LinkedIn and being a podcaster and YouTuber. Over the years I have worked closely with ACCA to support the qualification. I have won three PQ awards – one for my podcast, one for Lecturer of the Year, and one as part of the Online College of the Year!’ If you want help passing the ACCA SBR exam, check out my socials or WhatsApp me.

Message Tom on +44 7725 350793 See www.tomclendon.co.uk And there’s more on Tom’s YouTube channel PQ Magazine September 2026

25

PQ CIMA spotlight

To AI, or not to AI – that is the question AI can be a valuable study aid, but Nasheen Wuisman explains why you should take a sceptical approach when using it

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his picture probably made you do a double take, and you’re right to do so! Unfortunately, in this case artificial intelligence (AI) doesn’t see anything wrong with it. I asked many times, even tried ‘pretty please’, but it wouldn’t correct her arm. In fact, the original image began to look even more amusing, with each edit, as AI redrew it with her head facing backwards. It’s clear to us all that the image generated is not accurate – that’s because we know what the outcome should be. But what about if you don’t know what the outcome is meant to look like? How do you know that what you see or read is accurate? Using AI in exam preparation To be transparent, I will be taking a helicopter view on this topic. This article is more of a cautionary tale to make sure you don’t overly rely on AI, and that you question AI-generated content with professional scepticism. I recently spoke to a group of students in a virtual focus group about how they use AI when preparing for their CGMA exams. It was incredibly insightful as to what they’d been using it for, including: • Explaining technical content. • Generating example questions based on the pre-seen. • Generating sample answers to exam tasks or example questions. • Question pattern identification(s). • Using AI to mark their answer. Interestingly, one student told me that she found seeing what her AI tool had generated in written word made it feel authentic; but she just wasn’t sure whether to believe it or not, or which parts of it to believe. She didn’t know the outcome and felt like she was back at square one. This created a whole load of self-doubt, something no one ever needs. AI does have its place in your study journey, but it’s vital to know when to rely on it and when to take a more pragmatic approach. When to AI? Whilst learning technical content, AI can be useful when you need: • Support to understand theories. • Concepts to be explained, simplified further and broken down.

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• Support understanding content in a different language. • A practical example. • A helpful summary of topics. • Insights on calculations. • A study plan. • Additional Objective Test-style practice questions (while recognising they may not fully reflect the format and standard of the exam). AI, with its extensive theoretical grounding, can be a big help in these and some other areas, as long as it is in a way that matches your level of study and learning scope. You also need to consider what the CGMA syllabus specifies within the core activities to stay focused on hitting the right sized nail on the head. Remember that the quality of the output you receive depends on the quality and quantity of information and instructions you provide. AI can be a useful study aid, but it still requires you to think critically about the responses it generates. When not to AI? Case study exam preparation is about learning and developing skills that can be demonstrated in the exam. Skills such as application and time management. Also, critical thinking skills like communication, professional scepticism and analysis skills that you can use to demonstrate your understanding are all required in the exam.

When examiners marks a script they want to see your ability to meet the personas set through the qualification and demonstrate the capabilities expected of a CGMA qualified professional. Using AI to generate sample answers creates a reliance that simply will not exist on exam day. A crucial part of case study exam preparation is learning to be flexible and adaptable, to make connections between different pieces of information, drawing on relevant technical knowledge and applying it appropriately to the scenario presented. You also don’t want to predict or assume too much before going into the exam. After all, you’ve not seen the questions or the unseen reference materials yet, and neither has your AI. Therefore, relying on AI and information outputs will impact any assumptions made before the exam day. Critical thinking is one the most valuable skills you can develop for success in exams, interviews and the workplace. AI is a maths and databased prediction tool, not a thinking mind. The examiner, the interviewer and future employer want to see a thinking mind – your unique thinking mind – and the value it can bring. What AI does not know Asking AI to mark an answer or analyse a preseen can have some value. However, please bear in mind the limitations that a generic AI tool has. It’s not aware of: • How our marking scheme and how marks are awarded from a level 1-3 perspective. • How the CGMA syllabus weightings impact marks. • Which topics have been assessed in previous examinations and how that could link to the current pre-seen in a reliable way. • How proficiency is determined based on the core activities. • The specific persona you are expected to demonstrate at your level of study. • Whether all the necessary factors have been taken into consideration. And finally, AI can hallucinate! Look at her, her arm is facing the wrong way. Is better to stay away from AI? AI is now part of our everyday lives, and we should embrace it in the right way. Use it for the tasks mentioned above, to help motivate you when you need it and to help with study challenges. However, the less you rely on AI for aspects of Case Study preparation that involve developing your own skills, the more successful you are likely to be when it comes to demonstrating these skills in the exam. I want you to become a successful and competitive professional who is supported by AI in the years to come, rather than one whose thinking is dictated by it. If in doubt, just reach out. We’re here to support your choices and progress, and guide you – with the right tools – towards exam success. Polite reminder: When using CIMA materials, ensure you comply with our intellectual property guidelines and seek approval where required. • Nasheen Wuisman, Senior Manager – Global Academic Progression at CIMA PQ Magazine September 2026

PQ ICB spotlight

AI and the level playing field When everyone has AI, why will they choose you? The ICB’s Vanessa Aradia offers some encouraging words

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spent four days at the ITUorganised ‘AI for Good Global’ summit in Geneva in July, alongside 12,000 delegates from 170 countries, watching technology built to extend what humans can do. I went half-expecting to come home feeling replaceable. I came home convinced of the opposite: this is the age of the human. Here’s why. Every dazzling

demonstration pointed to the same quiet conclusion: that this technology will soon be available to everyone. Every practice, every finance team, every competitor will have the same remarkable tools. And when a capability becomes universal it stops being a differentiator. Which leaves a far more interesting question than ‘will AI replace you?’. When everyone

has AI, why will a client or an employer choose you? The answer is being written now, and it isn’t technical. It’s the professional who can take an AI output and know whether it can be trusted. Who can sit with a worried business owner and turn analysis into a decision. Who spots the question the software never thought to ask. That belongs to all of us – the student sitting their first exam, the bookkeeper running a practice, the finance director signing the accounts. Working brilliantly alongside the technology is becoming the defining professional skill at every stage of a career, not a hurdle for the newest people in the room. The keynote that stayed with me came from will.i.am, who stood before a hall buzzing about robotics and quantum computing and barely mentioned technology at all. He talked about learning.

“Education is forever,” he said, then smiled and added that there has never been a more amazing time to be a student. In this profession, that is now all of us. It’s the thinking behind ICB’s Future Skills programme, launching this September, focusing on the skills technology can’t copy: communication, leadership, innovation, digital confidence and community influence. It’s the conversation I’m looking forward to taking into the UN’s working groups on the future of work and skills in the age of AI. The technology in Geneva was extraordinary, and within a few years it will be ordinary. That is simply what technology does. The humans who master working with it never will be. AI looks like the age of the machine. Underneath, it is the biggest invitation human skills have ever received. RSVP early. • Vanessa Aradia, Head of Learning and Development, Institute of Certified Bookkeepers

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28

PQ Magazine September 2026

back to basics

PQ

= Adjusted cash book balance If you’re ever unsure whether to add or take away, picture it from the bank’s point of view: what happens to their figure once the item finally clears? Worked example Cash book route

Bank statement route

Cash book balance: £1,240 Less bank charges: −£15 Less standing order: −£60 Updated balance: £1,165

Bank statement balance: £1,540 Plus outstanding lodgement: +£50 Less unpresented cheque: −£425 Adjusted balance: £1,165

Both routes land on exactly the same figure. That’s not a coincidence – it’s the proof that every difference has been accounted for correctly.

Bank reconciliations: beyond the balance Match the ‘why’ behind bank reconciliations to stop guessing which way the adjustment goes, writes Sarah Wilson

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our cash book says £2,300. The bank statement says £2,180. Two different figures, both correct. That sentence sounds like a contradiction, but it’s the whole idea behind a bank reconciliation. Nobody has made a mistake. The cash book and the bank simply haven’t heard the same news yet – and your job is to work out who knows what, and adjust accordingly. Get that logic straight, and every reconciling item slots into place on its own. Skip it, and you’re left guessing which side to add an item to, hoping it happens to close the gap. Heard the news? Some differences exist because the cash book hasn’t caught up. Bank charges, standing orders, direct debits, interest received, a dishonoured cheque – the bank has already processed these, but nobody has told the cash book. Here, the cash book is the one that’s out of date. You update it, before you go anywhere near a reconciliation statement. Other differences exist because the bank hasn’t caught up. You’ve written a cheque to a supplier so it’s already left your cash book – but the supplier hasn’t paid it in yet, so the bank hasn’t seen it. You’ve banked a customer’s

cheque so it’s already in your cash book – but it hasn’t cleared, so the bank hasn’t recorded it, either. In both cases, your cash book was right all along. It’s the bank’s figure that will change once these transactions catch up. This is where students most often go wrong: ‘correcting’ an unpresented cheque in the cash book (it was never wrong), or forgetting to update the cash book for a bank charge (it genuinely was). Before you touch a figure ask: is this something I haven’t recorded yet, or something the bank hasn’t recorded yet? That question tells you everything about where the adjustment belongs. Proving it Once the cash book is updated for everything the bank already knew about, its balance is your true cash position. The reconciliation statement then starts from the bank statement and adjusts for the items the bank hasn’t caught up with, to prove it reaches that same true figure: Bank statement balance + Outstanding lodgements (money you’ve banked that hasn’t cleared yet) − Unpresented cheques (money you’ve paid out that hasn’t left the bank yet)

Now have a go A business’s cash book shows a balance of £2,300. The bank statement shows £2,180. On investigation you find: A: A direct debit for £90 has not yet been entered in the cash book. B: A cheque paid to a supplier for £210 has not yet been presented at the bank. C: A customer payment of £240 has been banked but hasn’t yet cleared. Which items update the cash book, and which belong in the reconciliation statement? Answer: Only A updates the cash book, because the bank already knew about it and the cash book didn’t: £2,300 − £90 = £2,210. B and C are timing differences and stay out of the cash book – they belong in the reconciliation instead: £2,180 + £240 (outstanding lodgement) − £210 (unpresented cheque) = £2,210. Both routes reach the same figure, so the reconciliation is proven correct. Final thought A bank reconciliation is not about forcing two figures to agree – it is about explaining why they don’t – yet. Once you know whether an item belongs in the cash book or the statement, every difference has a home, and the arithmetic simply confirms what you already understood. That is exactly what examiners test: not whether your total matches, but whether you can correctly place each item. Approach it as detective work, not a memory test, and it becomes one of the most satisfying tasks to get right. • Sarah Wilson is a learning content creator and AAT tutor at Accountancy Learning

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PQ Magazine September 2026

29

PQ Accountex Manchester

It’s showtime! A

The North’s biggest accountancy event just got bigger

ccountex Summit Manchester returns for its eighth edition on 15 September 2026 at Manchester Central. This year’s event is set to be the biggest and most exciting to date, bringing together the tools, knowledge and connections that accounting and finance

professionals across the North need to stay ahead. This year also marks a new chapter for the event, with the FD Show joining Accountex Summit Manchester for the first time, with its own dedicated theatre and programme

for finance directors and senior finance professionals. More than 135 software and service providers will fill the exhibition floor, from huge names like Sage, Xero, FreeAgent, Wolters Kluwer, TaxCalc, Bright, Intuit QuickBooks, IRIS and Dext, to rising brands including Link My Books, Finquery, Moss and Advantage. This will give attendees everything they need to evaluate and invest in solutions to future-proof their practice. A free, CPD-accredited seminar programme runs across five theatres, including the new Showcase Stage, covering the topics shaping the profession in 2026. Expect senior voices from HMRC and Companies House on Making Tax Digital, the Transformation Roadmap and incoming reporting reforms, alongside sessions on AML compliance essentials, the future of leadership, and getting the best from your team. The FD Show brings its own dedicated theatre and seminar programme tailored to finance directors and senior finance professionals, plus fintech suppliers built around their needs. And the post-show drinks event returns, giving attendees, exhibitors and speakers a chance to unwind and keep the show-floor conversations going. Secure your free place Accountex Summit Manchester incorporating the FD Show 2026 takes place 15 September 2026 at Manchester Central. Book your free ticket here.

Proven to boost your exam results Study Hub is proving to be a great success for ACCA students, increasing exam results by as much as 18%*. With online access to study chapters, practice questions, flashcards and short quizzes, it streamlines revision and enhances your understanding. Use Study Hub as an essential part of your exam prep and boost your chances of success.

#ACCAStudyHub *Based on pass rates of Study Hub users vs. non-users for the September 2023 session-based exams.

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PQ Magazine September 2026

CIMA objective test PQ

Make every wrong answer count HTFT’s Matthew Evans explains how a simple three-bucket debrief turns your CIMA objective test practice into real marks

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ou’ve just finished a mock, or a batch of practice questions. You click through the results: 60 questions, 44 right. Fine. But those wrong answers are where the real work is, and most students waste them entirely. The usual move is to read the explanation, note the correct answer, think “oh yes, of course”, and move straight on to the next batch. Which means you’ve learned almost nothing from getting it wrong in the first place. If that sounds familiar – and if you’ve ever practised hundreds of questions and felt your score refusing to budge – the problem usually isn’t how many questions you’re doing. It’s what you do after. Practising questions is the engine room of revision – it’s where understanding is supposed to turn into marks. But practice only pays off if you fully review each attempt for what it’s telling you. The debrief is that step: the discipline that turns a pile of completed questions into actual improvement. It works by asking one question about every wrong answer – why did I get that wrong? The reason matters enormously, because the fix for one type of mistake is completely different to the fix for another. Get the diagnosis wrong and you’ll pour hours into the wrong corrective action. That’s where the three buckets come in. Bucket 1 – Topic gap: you didn’t know it This is the most straightforward to diagnose, even if it’s uncomfortable to admit. You read the question, looked at the options and had nothing… not “it’s on the tip of my tongue”, just a blank. The content either didn’t get enough attention in your revision, hasn’t come up yet, or simply hasn’t lodged. The test: if I’d had ten more minutes on this, could I have worked it out? If the honest answer is no, it’s a topic gap. The fix is to go back to the source material and actually learn it. Not skim it. Then put it into your own words, on a flashcard or out loud; if you can’t, you haven’t learned it, you’ve just re-read it. Finally, do a few questions on that topic within 48 hours, while it’s still fresh. You can’t practise your way out of content you don’t yet know, so this bucket comes first. Bucket 2 – Technique gap: you knew it but applied it wrong This is the one students under-diagnose the most. You read the explanation and your instant reaction is “I knew that!” – and you did, in isolation. But something went wrong between knowing the content and answering the question. Maybe you confused two similar concepts, applied the right principle to the wrong part of the scenario, or misread what was actually being asked. PQ Magazine September 2026

The danger is that a technique gap feels like a topic gap in the moment, so students go back and re-read the same notes. That won’t fix it. If you could recognise the answer the moment you saw the explanation, the issue was never knowledge… it was application. The test: now I’ve read the explanation, could I get this right if the same question came up again? If yes, but you still got it wrong today, it’s technique. The fix here is reps, not reading. It’s more questions on that specific concept type, a quick ‘confusable concepts’ list with the key difference highlighted, and attention to the exact word or scenario detail that should have triggered the right response. Bucket 3 – Careless error: you rushed, misread or slipped Careless errors are uniquely frustrating because they don’t feel careless at the time. You’re moving at a sensible pace, you pick an answer and then you discover you answered what was true when the question asked what was false, used the figure before the adjustment rather than after, or stopped a calculation one step early. These aren’t knowledge problems. You knew it; you just didn’t execute cleanly. The good news is that careless errors are fixable with zero extra study. They’re a habits problem, and habits are entirely within your control. The test: did I actually know this, and just apply it badly? Look for your pattern, because careless errors are rarely random; most people have one or two recurring types. Before you answer, re-read the last line of the requirement… that’s usually where the trap is. Write calculations down rather than holding

them in your head. And don’t wave these away as one-offs: three or four a session is 10 to 15 marks across a full paper, and in a 60-question OT that’s often the difference between a pass and a fail. Running the debrief The buckets only help if you use them consistently. After each session, log every wrong answer with your gut feeling for why – before you debrief the answers. Then read the rationale properly, so you could explain the reasoning in your own words. And assign one of the three buckets. Then take the matching action: topic gap means study and note; technique gap means targeted questions; careless error means log the pattern and adjust the habit. This is worth far more of your time than rushing through another 60 questions. Over a few sessions, look at where your wrong answers cluster. Mostly topic gaps means your content coverage isn’t complete yet – fix that before piling on more questions. Mostly technique gaps is actually the goodnews scenario: the knowledge is there, you just need more reps to sharpen application. Mostly careless errors means deal with your exam habits now, not the week before the real thing. Don’t ignore your correct answers Here’s the part almost everyone skips. Scoring 75% feels good but buried in that 75% are answers you got right for very different reasons, and not all of them mean you’re on the right track. When you review a correct answer, be honest about which of these three it was. Solid knowledge: you understood it, knew what was being tested and answered with confidence. Do nothing: this topic is in good shape. Educated guess: you had a partial understanding, ruled out a couple of options and made a sensible call that happened to be correct. Treat it like a near-miss… read the rationale and close the gap. Total stab in the dark: you had nothing and got lucky. This is a totally legitimate tactic in the actual exam if time is fast running out, but while you’re still in the revision stage this is the most dangerous category, because it’s hiding a topic gap that you could get several questions on – from different angles – in the real thing. Treat it exactly like a wrong answer. In a 60-question mock, most students have five to 10 answers in those last two categories. It’s perfectly normal, but it means your percentage is a slightly flattering picture of where you really stand. A quick habit fixes this: after each question, right or wrong, ask “am I truly confident in that?” before moving on, and note anything that isn’t. The students who walk into the exam with real confidence are the ones who know why they got each question right and not just that they did. Build the habit. Assign the bucket. Take the action. Do that every time, and the improvement compounds. That’s how the three buckets turn wrong answers into valuable exam marks. For more on this click here. • Matthew Evans is Head of CIMA Operational Level Courses at HTFT Partnership 31

PQ salary survey

The 2026 GAAPweb Salary Report GAAPweb, the specialist job site for finance and accounting professionals, has officially released its 2026 Salary Report. What did they find?

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ased on feedback from over 700 professionals across the UK, from finance assistants to global brand CFOs, the 2026 GAAPweb Salary Report breaks down current pay scales, benefits and workplace trends across the sector. Designed to help professionals navigate an evolving job market, the publication provides an unfiltered look at what finance roles are paying across the UK and what is truly driving career decisions this year. The 2026 Salary Report has found that: • 60% of finance professionals received a pay rise in the past year. • Average earnings rose 5% year on year. • PQ accountants saw an 11% salary increase. • 50% of respondents took home a bonus. • 71% have a hybrid or remote working arrangement. • 60% consider flexible working nonnegotiable. • 45% are concerned or wary about the use of AI in the workplace. • There is a 21% gender pay gap across survey respondents – a gap mirrored by HM Treasury Women in Finance Charter findings showing female representation in senior management still sits at 37%. The Salary Report supports the undeniable value of professional qualifications in boosting long-term career earnings: • ACA-qualified professionals currently earn the market’s highest salaries. • CIMA remain the most popular certification among respondents at 26%. ACCA rose from 22% to 24%, becoming the second-most preferred qualification. • Gen Z professionals are increasingly targeting specialised professional streams, such as IFA and ACT, to secure early employability, niche expertise and accelerated career growth.

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• AIA holders are 50% Millennials and a 50% split across Gen X and Baby Boomers, highlighting the multi-generational appeal among rising mid-career talent and senior positions. Commenting on the report, Andrew Robertson, Commercial Director at GAAPweb, said: “The 2026 Report presents a resilient yet dynamic finance job market. While average salaries have grown 5% and half of our respondents secured a bonus, under the surface lies a clear shift in candidate priorities. With 58% of finance professionals actively planning to look for a new job over the next 12 months, employers are facing a retention challenge. “In today’s market, competitive pay alone is no longer enough. Flexible working has become a non-negotiable baseline, and job security is now a primary motivator across every generation. Employers who want to attract and retain top talent must seek to

offer tangible financial incentives, secure pathways for career growth and uphold workplace flexibility.” He added: “It’s particularly encouraging to see part qualified accountants enjoying an 11% salary boost this year. For PQs and career starters, the report data shows that professional qualifications remain a significant driver of long-term earning power. Furthermore, with 45% of respondents approaching the use of AI in the workplace with caution or anxiety, holding a recognised professional certification and continuously developing key skills and competencies will be crucial to safeguarding role longevity and progressing into senior roles.” Download the full report here to explore the precise changes in pay across various sectors and workplace trends, designed to help you navigate your salary prospects and career goals with confidence.

PQ Magazine September 2026

ACCA exam tips PQ

SEPTEMBER ACCA EXAM TIPS

The exams are nearly here, but there is no need to panic – with the help of our friends at BPP we have the key for success in the Applied Skills papers. Go online to www.pqmagazine.com for all the Strategic paper tips

Audit & Assurance (AA) Section A: Three mini-case style scenario-based questions each with five two-mark questions based on the scenario (total 30 marks). Each mini-case question will test single topic areas of the syllabus and so will either test syllabus area A, B, C, D or E. We would particularly expect questions in Section A to focus on syllabus areas A and E. Section B: Q16: One 30-mark question. Q17, Q18: Two 20-mark questions. All three questions in Section B will be broken down into sub requirements and be scenario based. Most marks in each question will test syllabus areas B, C and/ or D. Areas expected to be tested in questions 16 to 18 include: • Audit planning. • Audit risk (identification and explanation of audit risks from a scenario and explanation of the auditor’s response to each risk). • Internal audit. • Internal controls (identification and explanation of deficiencies in internal control and the recommendation of suitable internal controls, and identification and explanation of direct controls and description of tests of controls). • Corporate governance (identification and explanation of corporate governance deficiencies and recommendations to address the deficiencies). • Audit procedures (substantive procedures and tests of controls). The exam is a computer-based exam and can cover any part of the syllabus. General advice: Where questions are based on a scenario it is essential that you use the information in the scenario to score the identification marks and then develop this to score the explanation marks. The exam often provides a table for you to complete your answer. For example, audit risk questions will have a table with two columns, one for ‘Audit risk’ and one for ‘Auditor’s response’, with each properly explained point being worth one mark. Using this tabular approach encourages you to answer both parts of the question, therefore maximising your marks. Pay attention to the verbs used in question requirements as these indicate the number of marks available. For example, the verb ‘explain’ requires a sentence and will score one mark if properly explained whereas the verb ‘list’ simply requires you to list out information with no further explanation and this will score ½ mark per point. Finally, it is essential that you read the Examiner’s Reports, which are issued twice a year after the June and December exam sittings. These are an invaluable source of advice and provide a sample Section A OTQ case style exam question as well as three constructed response questions from the March/June and September/ December sittings. Not only do they provide the PQ Magazine September 2026

example questions but they are accompanied by a commentary from the Examining Team, which gives guidance on interpreting the question requirements and common mistakes/areas of weakness noted during the marking process. Performance Management (PM) Section A: Fifteen two-mark objective test questions on a wide range of topics. It is essential to have a broad syllabus knowledge and to do plenty of question practice to score well in this section. Expect a mix of calculation and discussionbased questions, note that there are no marks for workings in this section. Good time management is essential as it is easy to get caught up in a tough calculation which ultimately will only be worth two marks. Never be tempted to spend more than five minutes on any question in this section. Recent examiner feedback stresses that careless mistakes are common in Section A. Always re-check whether the question asks for cost per unit, total cost, or a variance figure, as incorrect interpretation of the requirement is a frequent reason for losing easy marks. Section B (case questions): Three separate

scenarios with five objective test questions on each scenario; each question is worth two marks. Questions are not dependent on each other and can be answered in any order. Each scenario could be a mix of topic areas or focused on one topic and will usually consist of two/three calculations and two/three narratives. The examining team have highlighted that weaker candidates often lift words from the scenario without applying their knowledge. Stronger answers demonstrate why the information in the scenario is relevant and link it to the theory or calculation. Section C (constructed response questions): Two 20-mark questions, which could be from, but not limited to: budgetary systems, planning and operational variances, mix and yield variances and evaluation of the company performance (either as a whole, or on a divisional basis). Familiarity with the CBE software is important as you may be expected to use both a word processing and spreadsheet format for your answer. Learn standardised layouts for calculations

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PQ ACCA exam tips Continued from page 33 such as variances, learning curves and limiting factors. This will save you time in the exam and mean that you are less likely to make mistakes. The split of marks tends to be approximately 40% calculations and 60% discussion, so don’t neglect the written elements of this paper. Make sure that you always fully explain your ideas. Interpretation and application are important skills that are tested in this paper so make sure you make full use of the scenarios that you are given in the exam. Examiners have commented that many candidates can perform the calculations but then fail to discuss their meaning. To score well, you must explain what the figures imply for management and link back to the organisation’s objectives or performance. Professional skills are increasingly expected even at PM level: good structure, clarity of communication, and logical argument will all help you secure higher marks. Time management is another common weakness. Stronger candidates allocate their time proportionately (e.g. 36 minutes for each 20-mark question) and ensure they attempt all requirements rather than leaving parts blank. Financial Management (FM) Section A: 15 objective test questions (OTQ) worth two marks each. Questions often test your knowledge of key technical terms and will balance out the questions in Section B and C of the exam to make sure that all aspects of the syllabus are examined; so, questions will often test your understanding of financial management and objectives (including ratio analysis) as well as the economic and financial environment (financial markets, fiscal and monetary policies). Section B: Three 10-mark mini casestudies each containing five OTQ questions. Commonly examined areas are working capital management (e.g. the operating cycle, the impact of a change in credit period or accepting a factor’s offer), business or security valuations, and risk management (currency and interest rate risk). Section C: Two 20-mark questions. Questions will be broken down into discussion and numerical requirements based on a common scenario; marks will be split evenly between calculations and discussion. These questions will focus mainly on syllabus sections C (working capital), D (investment appraisal) and E (business finance). Whichever of these three topics does not feature in section C is more likely to be tested in section B of the exam. Questions from syllabus section C (working capital) are likely to be broad ranging so a good broad knowledge of this syllabus area is important. Candidates are sometimes caught out by section C questions in this area, so make sure you practice this type of question as part of your final revision. Questions from syllabus section D (investment appraisal) are likely to feature NPV with inflation and tax, however it is important to also be able to answer questions that include risk, uncertainty, leasing, asset replacement and capital rationing. Questions from syllabus section E (business 34

HEALTH WARNING

These tips should only be used in conjunction with proper study. We cannot guarantee that these topics will appear in the actual exam as we have not seen the exam papers. Examiners are not predictable so it is vital that all core syllabus areas are revised fully. finance) often test the calculation and analysis of a company's cost of capital. Candidates often assume that business finance questions will always test this area, but questions also frequently test the evaluation of financing options (debt or equity) which sometimes catches candidates out – make sure you practice this type of question as part of your final revision. Financial Reporting (FR) Section A: Fifteen two-mark objective test questions on a wide range of topics, including areas such as consolidation and interpretation of financial statements that will also be covered in detail in Section C. Expect a question or two on non-core areas (e.g. sustainability following the issue of IFRS S1). Read the scenario, requirement and answer options carefully and ensure you capture the correct information from the scenario to answer the requirement. Don’t leave any questions unanswered - there is no negative marking so guess if you are unsure of the correct answer. Section B: Three separate case-study scenarios with five objective test questions on each scenario; each question is worth two marks. Each scenario could be a mix of topic areas (for example, revenue and receivables are often related, as are property, plant and equipment and leases) or focused on one topic and will usually consist of two/three calculations and two/ three narratives. Questions are not dependent on each other and can be answered in any order. Don’t leave any questions unanswered – again, guess if you are unsure of the correct

answer. Section C: Two 20-mark constructed response (long-form) questions, one covering the interpretation of financial statements and the other, the preparation of financial statements. One question will be in the context of a single company and the other will be in the context of a group, so you could be faced with a single company interpretation question and a group accounts preparation question or vice versa. Both questions will require knowledge from other areas of the syllabus, particularly the accounts preparation question which will have a range of adjustments covering various areas. Accounts preparation questions may require full financial statements or extracts – read the requirement carefully. Candidates commonly expect questions on the statement of profit or loss and statement of financial position, but shouldn’t forget about other topics such as comprehensive income, the statement of changes in equity and the statement of cash flows. A single entity accounts preparation question could be preparation from a trial balance or restatement of given financial statements with common adjustments being for depreciation, revaluation and current/deferred tax (including deferred tax on revaluations) plus a mixture of adjustments on other syllabus areas, e.g. leases, substance over form issues, financial instruments (change in fair value or amortised cost), share issues, government grants, inventory valuation, and revenue recognition. Group accounts preparation questions will provide the separate financial statements (or extracts thereof) of the parent and relevant subsidiary(ies) and associate. Candidates should be prepared to set out the standard workings for goodwill, non-controlling interest, movements in net assets, retained earnings as those are commonly examined. Other common adjustments are intra-group sales of goods, intra-group sales of assets, dividends and fair value adjustments. ACCA has previously clarified that a consolidated financial statements preparation question could include up to two subsidiaries and one associate which allows additional scope for examining the disposal of a subsidiary (including as a discontinued operation). Be prepared for such a question. Make sure that you use the ACCA’s Practice Platform to familiarise yourself with the spreadsheet tool you will need to use when answering accounts preparation questions. This can be found on the ACCA’s website. Candidates continue to find the interpretations question challenging. In both single entity and group interpretation questions, candidates must avoid making generic statements about the movement in ratios and instead focus on using the information in the question to, for example: identify key changes in the period (e.g. change in sales mix, closed down an operation, purchased a new subsidiary); identify transactions that would cause inconsistencies between periods or between balances (e.g. revaluation of assets for the first time, particularly if the revaluation was at the end of the period); identify any changes in accounting policies or estimates, or classification PQ Magazine September 2026

ACCA exam tips PQ

(e.g. one company presents expenses as part of cost of sales whereas another presents as part of administrative expenses). ACCA has previously clarified syllabus wording to emphasise the importance of the statement of cash flows in interpreting financial statements. Candidates should be prepared for such a question. Taxation (TX) Section A : 15 Objective Test questions (OTQs). It is important to remember that section A offers the TX examining team an opportunity to test the whole syllabus so practising on all kinds of TX questions from the practice and revision kit will help build on and complement your existing knowledge. You should expect at least a couple of these OTQs to be devoted to the administration of income tax and corporation tax. So, candidates should ensure they are comfortable with the following: • Due dates for the payment of income tax (including payments on account). • Due dates for the payment of corporation tax (including instalments for large companies). • Filing dates for the income tax and corporation tax returns. • Penalties and interest for late payments and PQ Magazine September 2026

returns. Also likely to be tested in section A of the exam are the following topics: • VAT rules on registration, impairment loss (bad debt) relief, and the SME schemes relating to cash accounting, annual accounting and flat-rate schemes. • Inheritance tax due on lifetime transfers both in the donor’s life and on death. • Statutory residence tests for individuals. • Identification of groups of companies for corporation tax loss reliefs and gains. • Trading loss reliefs for both companies and sole traders. Section B: Three scenarios each with five OTQs. In section B of the exam the questions will be like those of section A but there will be a longer scenario to deal with. This means a slightly different exam skill is necessary as you have more information to work through and each OTQ will require you to find the relevant information or data in that scenario. It is not a difficult skill, but we would hope you have had time to practice an extensive range of section B questions from the practice and revision kit before attempting the real exam. Section C: Three constructed response questions; two worth 15 marks and one worth 10 marks. In section C you will face the longer,

constructive response questions with scenarios and much more open requirements. Your answers will need not just sound technical knowledge, but also the application of that knowledge to the question you have been asked. Furthermore, your answer will have to be presented logically so the marker can follow your thought processes. At least 50% of your revision time should be spent answering the section C questions in the practice and revision kit to build up confidence and speed in a way that will also maximise marks. 1. Remember to learn your income tax and corporation tax pro formas. 2. Calculations which would require no more than two or three entries into a calculator can be included in the relevant cell of your pro formas (e.g. time apportioning a salary). Calculations which are more complex (e.g. company car benefits) need separate workings which are properly referenced (W1, W2, etc.) and have a heading. Use the cell formulae to link the workings answer into your pro forma – then if you change the working the main body will automatically update. 3. Attempt the narrative parts of the requirement – aim for as many sentences as there are marks with each sentence containing something technical. Keep your paragraphs to no more than three sentences long. 4. Your exam will be in the CBE software and the spreadsheets have some difference to the software you may be accustomed to, so it is crucial you practise using the CBE software especially for Section C type questions. 5. Remember you cannot insert rows into the CBE spreadsheets. So, leave plenty of space on the page (especially when setting up pro-formas). You may need to add something in and you can always go back and move workings up the page. Show workings DOWN the page, rather than ACROSS the page as it makes them easier to mark. Wellspaced answers are also easier to mark – and you always want to keep your marker happy! We know that the two longest questions will focus on income tax and corporation tax. These are likely to include the following: • Employment benefits. • Property income. • Relief for pension contributions. • Adjustments to profit to arrive at trading income for both companies and sole traders – in past sittings we have seen a number of questions whereby you have to correct errors in computations included in the scenario. • Capital allowance computations. • Chargeable gains calculations. So, remember to cover the whole syllabus when using the practice and revision kit. General advice: Finally, remember the pass mark is 50%, so you don’t need to be perfect. If you don’t know something have a guess and move on. Sometimes you have to do that in order to get follow through marks in section C questions. If you make a mistake, but then use that incorrect figure later in a subsequent calculation, then that’s fine – you can only lose the mark once. In sections A and B never leave an OTQ unanswered − have a guess if you don’t know the answer. It might be right! • Remember, for your strategic level tips go to www.pqmagazine.com 35

PQ apprenticeship programme

Developing tomorrow’s finance leaders A new partnership between the University of Exeter and the AAT is reshaping accounting education

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he accounting profession never stands still. Today’s finance professionals are expected to do far more than produce accurate accounts. They must interpret complex data, embrace digital technologies, contribute to organisational change and help businesses navigate an increasingly challenging economic landscape. As the profession evolves, so too must the way we educate the next generation of accountants. At the University of Exeter, we believe the future of accounting education lies in genuine partnership – bringing together employers, professional bodies and academia to create learning that is academically rigorous, professionally recognised and immediately relevant in the workplace. That philosophy sits at the heart of our Accounting Finance Manager Degree Apprenticeship. Developed alongside employers, professional bodies and in partnership with AAT, the programme has been designed to produce finance professionals who are ready not only for today’s workplace but for the future of the profession. What makes this programme distinctive is the way professional qualifications are embedded throughout the apprentice journey. Apprentices achieve the AAT Level 4 Diploma in Professional Accounting as part of the programme as they progress towards a BSc (Hons) Applied Accounting. They can then benefit from up to nine ACCA exemptions and eight CIMA exemptions, providing an accelerated route towards chartered accountant status.

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However, the programme is about much more than professional qualifications. Accounting today requires curiosity, critical thinking, leadership and commercial awareness alongside technical expertise. Apprentices are encouraged to question existing practice, analyse complex business challenges and develop solutions that create genuine value for their organisations. This approach reflects the university’s wider commitment to research-led education. As a Russell Group university we ensure apprentices learn from academics whose research is shaping business, finance and management, while applying that learning directly within their own organisations. The programme has been co-created with employers and professional bodies to ensure it meets the needs of modern business. Employer partners have played a central role in designing a curriculum that reflects the rapidly changing demands of the profession, from digital transformation and sustainability to datadriven decision making and strategic financial leadership. Kristian Leese, UK Financial Controller at Vanguard, believes this collaborative approach helps organisations build “a pipeline of professionals who are not only qualified but also deeply aligned with our business needs and culture”. He highlights the programme’s ability to develop expertise in regulatory interpretation, accounting systems integration and cross-functional communication – skills that increasingly define successful accounting professionals.

Similarly, Frankie Shearn, Talent Acquisition Partner at Carpmaels & Ransford, reflects on the long-term value of the programme: “Considering the position they will be in in three years’ time – with a degree, AAT Level 4, ACCA exemptions, three years of work experience and full-time earnings – we’re hopeful that the Accounting Finance Manager Degree Apprenticeship will turbocharge our apprentices’ careers.” Workforce needs At the University of Exeter, that partnership extends well beyond the curriculum. Through the Centre for Degree Partnerships, we now work with more than 550 employers across the UK, creating programmes that respond directly to workforce needs while maintaining the academic standards expected of a Russell Group university. Apprentices also become part of a thriving professional community. Alongside their studies, they can participate in initiatives including the university’s Leading Edge speaker series, employer networking events and WorldSkills UK competitions, helping them develop broader perspectives on leadership, innovation and the future of work. Ofsted described these opportunities as ‘transformational’, recognising the way they broaden apprentices’ understanding of ethical leadership, sustainability and professional practice. The quality of the university’s apprenticeship provision was recognised in its most recent Ofsted inspection, which judged three aspects of provision to be ‘Exceptional’ and two to be ‘Strong’. Inspectors praised an “exceptionally sophisticated culture of reflective improvement, institutional learning and ambitious apprenticeship practice” that anticipates and removes barriers before apprentices encounter them, enabling highly inclusive and frequently transformational educational experiences. Most importantly, inspectors recognised the impact apprentices have within their organisations, noting that they “rapidly build the knowledge and understanding that they need to make highly valuable contributions to the work of their organisations”, undertaking projects that improve efficiency and transform business practice. That is what makes degree apprenticeships so powerful. As we look to the future, the accounting profession will continue to evolve. Artificial intelligence, automation and new technologies will undoubtedly change the nature of finance roles, but they will not replace the need for professional judgement, ethical leadership and lifelong learning. Our ambition is to ensure every apprentice graduates with exactly those qualities. We are proud to be building an inclusive route into accounting and finance that equips apprentices to thrive from the start thanks to our special partnership with AAT. We have worked closely with our employer partners to ensure the programme is informed by – and aligns to modern business practice. That collaboration is, and will remain, the foundation of everything we do. • Thanks to the University of Exeter for this article PQ Magazine September 2026

CIMA insights PQ

What does your future self need to succeed? Paul Turner explains how CIMA’s Rise2040 initiative can help you as you progress through your career

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alk to anyone who entered the finance profession even as little as 15 years ago and you’ll hear how much things have changed. Automation, digital payments, online finance tools, artificial intelligence and data analytics are reshaping not just how finance work gets done, but what organisations need from the professionals behind it. For those just starting out the future can feel both exciting and uncertain. To better understand what lies ahead, AICPA and CIMA have launched Rise2040, a professionwide initiative bringing together 6,000 insights from around the world to explore, challenge and shape the future of finance and accounting. Rise2040 is not about predicting a single future with certainty; no one can know exactly what will happen next. Instead, it is about preparing finance and accounting professionals to thrive in uncertainty and disruption: to remain relevant, trusted and future-ready, no matter the circumstance. Trust remains the anchor Trust, ethics and integrity have always been hallmarks of the profession. As organisations face increasingly complex choices and technology becomes more deeply embedded in business decision-making, those qualities will become even more valuable. In a world of deepfakes, AI-generated content and misinformation, finance and accounting professionals will continue to play a vital role in creating confidence for leaders, investors, regulators and society. The future of finance and accounting will be shaped by technology, but trust will remain its core. Your judgement will become more valuable As intelligent systems increasingly support routine data processing, reporting and firstdraft analysis, the real opportunity lies in strengthening our roles as trusted advisers – people who interpret information, challenge assumptions, identify risks and guide better business decisions. Future finance and accounting professionals will need to be confident working with AI and intelligent technologies. AI literacy, data fluency

PQ Magazine September 2026

and technological fluency will be essential, not only understanding what these tools can do, but also where their limitations lie and when human judgement is required. While technology can process huge volumes of information at speed, help us spot trends, we might have missed or even challenge assumptions, it does not fully understand context, values, relationships or consequences. It cannot walk into a meeting and explain why a recommendation was made, answer follow-up questions, or build trust. Those responsibilities still belong to people. In a world where information is abundant, the ability to decide what matters will become a defining professional skill. Ultimately, this is what it means to keep ‘Human in the Lead’. Human skills the differentiator Communication will be another career-defining capability. As finance work becomes more data-rich, professionals will need to turn complex analysis into clear, useful insight that

others can understand and act on. The ability to communicate with clarity, confidence and empathy will help distinguish those who can influence decisions from those who simply produce information. But communication alone will not be enough. Future finance and accounting professionals will also need strong relationshipbuilding, collaboration and influencing skills. The ability to bring people together, challenge constructively and build consensus will become increasingly valuable. Strong technical finance skills and competencies will remain crucial. But the future belongs to those who can connect financial insight to the decisions that shape an organisation’s future, from growth and sustainability to risk and long-term value creation. Building your career The skills needed to succeed in the future profession are already becoming essential in today’s workplace. Employers are increasingly looking for finance and accounting professionals who can combine technical expertise with business understanding, professional judgement and the ability to influence decisions. As we head towards the future, finance and accounting professionals will be valued not only for what they know, but for how they help organisations think, decide, and act with trust. The CGMA qualification is designed with that future in mind. Combining technical learning, business-focused case study assessments and practical experience, it helps develop the strategic, forward-looking capabilities needed to operate in a rapidly changing business environment. Now is an exciting time to work in finance as today’s professionals help steer organisations through uncertainty, shape strategy and support better decision-making across the business. Make no mistake: the future will not stand still. But for those willing to continually learn, adapt and reinvent themselves, the opportunities ahead have never been greater. After all, professional relevance is not something we achieve once. It is something we must earn again and again throughout our careers. • Paul Turner is Vice President – UK and Europe at CIMA 37

PQ ACCA spotlight

Navigating the changes

ACCA’s Rachel Norman explains how the association will recognise the progress of ACCA students as they move to the redesigned qualification

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n an ever-changing world, we continually evolve our qualification to meet the needs of modern business, ensuring that our future members’ skills and the ACCA designation will continue to be in demand with employers all over the world. However, if you’re a current ACCA student you may be wondering what the qualification redesign in 2027 means for you. The good news is that, regardless of where you are on your qualification journey, you’ll not only benefit from the changes we’re making, but your existing achievements and progress will be protected, too. To better understand how your transition will be managed, let’s start with a quick recap on what the redesigned qualification will look like.

relevant role and the completion of relevant Performance Objectives required. These changes will be implemented in July 2027, with the first Expertise and Strategic Professional exams taking place in September 2027. We will not be parallel running the current and redesigned ACCA qualifications, so all the current exams and ethics modules will no longer be available after this time.

Redesigned structure The redesigned ACCA qualification will continue to be structured across three levels: Knowledge, Expertise and Strategic Professional. There will also be a new Foundations level, which will provide a more streamlined pathway onto the qualification for those that don’t meet its minimum entry criteria. All these levels will consist of exams and a mandatory Essential Employability Module. Exams within each level of the redesigned qualification will be numbered, representing our recommended study order. However, we understand that for a variety of reasons students and tuition providers may wish to work through the exams in a different order, or may already be part-way through a level at point of transition. That’s why, within each level, students will continue to have the flexibility to complete both the exams and the Essential Employability Module within each level in any order they choose. Our Practical Experience Requirement (PER) remains unchanged ,with 36 months of supervised practical experience in a

Supporting your progress You can continue your studies in the build-up to these changes being implemented, confident that your progress and achievements will be recognised. Our transition policy ensures that all students can continue, uninterrupted, on a smooth path to membership irrespective of where they are in their journey. You will receive transition credit in July 2027 against elements of the redesigned ACCA qualification for any elements of the current qualification that you have already completed. We know each student’s circumstances are different, and we’ve developed personalised support resources to help you fully understand what the transition to the redesigned qualification will mean for you.

HOW THE FUTURE ACCA QUALIFICATION IS STRUCTURED

EXAMS

FOUNDATIONS

KNOWLEDGE

EXPERTISE

F1 Accounts Preparation F2 Management Information F3 Decision Making with Data

K1 Financial Accounting K2 Management Accounting

E1 Taxation E2 Financial Reporting E3 Audit, Risk and Control

K3 Business Law

E4 Finance and Investment E5 Performance with Data Analysis

ESSENTIAL EMPLOYABILITY MODULES

AWARDS AND DESIGNATIONS

EXPERIENCE AND EMPLOYABILITY

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STRATEGIC PROFESSIONAL

S1 Business and Sustainability Reporting S2 Strategic Business Leader PLUS 1 Options exam: SAA Audit and Assurance Professional SCF Corporate Finance Professional SDS Data Science Professional SPI Performance and Insights Professional STA Taxation Advisory Professional

Enterprise and entrepreneurship

Responsible Business Management

Digital Tech and Innovation

Ethical, Sustainable Leadership

Diploma in Accounting and Business

Higher Diploma in Accounting and Business Certified Accounting Technician (CAT)

Advanced Diploma in Accounting and Business Professional Accountancy BSc

Professional Accountancy MSc

Experience Optional employability modules

ACCA Qualification

Support resources Our online Transition Tool provides a personalised summary of how your completed exams and modules will transfer to the redesigned qualification. By simply entering the exams and modules you expect to have completed by July 2027 the tool will show you how your progress will be recognised, and which elements of the redesigned ACCA qualification you will need to complete. Additional Transition Guidance can also now be found on our website. Whether you’re a Foundations in Accountancy student, or approaching your final exams, this guidance will support your exam planning ahead of the changes next year, helping you to understand what choices you may have and what the right path is for your own qualification journey. I’d strongly encourage you to look at and use this support so that you can approach your exam planning, both pre- and post-transition, with confidence. Continue your progression My main advice, and what our guidance outlines, is to continue with your current progression towards ACCA membership without waiting for the redesign to be implemented next year. Your progress towards completing the exams, ethics module and PER will all be recognised. The earlier you achieve ACCA membership, the earlier you can take advantage of all the benefits this brings, including increased career opportunities, earning potential and recognition. Keeping you informed We’ll provide you with more information around key features of the redesigned qualification in upcoming editions of PQ magazine. For example, we’ll tell you all about our new Essential Employability Modules, our exciting new Options exam, Data Science Professional, and answer the most frequently asked questions about the redesign. Stay tuned to PQ magazine for more! • Rachel Norman is ACCA’s Innovation and Learning Assessment Qualification Lead PQ Magazine September 2026

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PQ CIPFA spotlight

All change in education As education evolves, so is the role of the CFO, writes Sarah Shreeves. So are you ready?

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ew qualification requirements for CFOs in larger academy trusts and colleges are coming into force. For finance professionals with ambitions to move into senior leadership, now is a good time to think about the experience and qualifications they will need. The Department for Education (DfE) has updated its expectations for chief financial officers working in larger academy trusts and colleges. Under the latest Academy Trust Handbook, trusts with more than 3,000 pupils recruiting a CFO from 1 October 2026 should require candidates to hold an appropriate professional qualification. From 1 September 2027, this will become a requirement. Similarly, the DfE’s College Financial Handbook has placed an identical requirement on colleges with 3,000 or more students. For finance professionals already working in an education setting, the changes are worth paying attention to. They provide a useful picture of what is expected of a modern CFO and give those considering senior roles time to prepare. Good financial management The starting point is, of course, good financial management. Academy trusts need CFOs who understand their finances, maintain effective controls and ensure that public money is managed properly. As finance professionals progress into senior roles, however, the decisions they are involved in become wider. A CFO may need to advise trustees on investment, explain the financial implications of strategic decisions, assess risk and help an organisation plan over several years. They will often be explaining financial information to colleagues and board members who do not have a finance background. The DfE’s recently updated guidance reflects this breadth of responsibility. The handbooks describe the CFO as having both a technical and leadership role and expects them to work closely with the trust’s or college’s senior leadership. That combination has implications for anyone hoping to move into a CFO position in education. Preparing for a senior role Technical knowledge remains central to the job, but becoming a CFO also requires the ability to apply it in different situations. For someone earlier in their career, that might mean looking for opportunities to work with senior colleagues or present financial information outside the finance team. Understanding how boards operate, how organisations assess risk and how longer-term financial plans are developed all provide valuable experience. Communication also becomes increasingly important with seniority. A technically correct answer is only useful if colleagues understand what it means for the decision in front of them. CFOs need to be comfortable explaining the

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consequences of different options and giving clear advice when there are competing priorities. Professional judgement develops through experience. Exposure to different decisions, challenges and parts of an organisation can therefore be as valuable as gaining experience of increasingly complex finance work. Where do qualifications fit in? The DfE’s changes put professional qualifications more firmly into the picture for people considering CFO roles in larger academy trusts and college. For institutions with more than 3,000 students, the handbook recognises professional accountancy qualifications from bodies including CIPFA. Its provisions for future CFO recruitment also recognise the CIPFA Diploma in School Financial and Operational Leadership qualification. There are different routes available depending on someone’s existing experience and career plans. CIPFA’s qualification provides a route to becoming a chartered public finance accountant and covers areas including strategic public financial management, governance, audit and assurance, public sector financial reporting and strategic leadership. But for those looking for something more focused on the education sector specifically, the CIPFA Diploma in School Financial and Operational Leadership is designed specifically for people already working in school and academy finance and operations. It provides another development route for professionals who want to build the knowledge required for more senior roles in the sector. Choosing the right route will depend on where someone is in their career, the role they currently hold and where they want to go next. A window to prepare There is a useful window before the requirements

take full effect. For employers, this is an opportunity to look at the people already working within their finance teams. If someone has the potential to become a future CFO, what experience do they still need? Do they meet the qualification requirements? If not, could professional development now help them progress? The same questions can be useful at an individual level. Someone aiming for a CFO role could look at recent job descriptions and compare them with their current experience. They might find that their technical finance experience is strong, but they have had relatively little exposure to boards, strategic planning or organisational risk. Others may already be operating at a senior level but need to consider their professional qualification. There is no single career path into education finance leadership. People enter the sector with different qualifications and build their experience in different ways. The DfE’s timetable gives both employers and finance professionals time to work out what development may be needed. Planning your next step The changes arriving over the next year provide some useful clarity for people considering a career in education finance. For aspiring CFOs, the practical question is straightforward: what would you need to develop today to be ready for the role you want in a few years’ time? That could mean gaining a professional qualification. It could mean seeking more experience of governance, risk or strategic planning. For many people, it will involve a combination of the two. Whatever the route, starting that conversation early gives finance professionals more choice about where their career takes them next. • Sarah Shreeves is Head of Training Services at CIPFA PQ Magazine September 2026

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PQ the workplace

Smart glasses: managing the legal risks Solicitor Claire Scanlan explains why organisations need to put policies in place to mitigate the risk posed by smart glasses

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ational pub chain J D Wetherspoon is the latest business to recognise the increased privacy concerns posed by ‘smart glasses’, banning their use by customers in all its 800-plus pubs. Demonstrating the current direction of travel, Monopoly Events has taken the same step at its Comic-Con events after attendees and celebrity guests raised concerns about covert filming. If pub chains and organisers running oneoff events feel compelled to act, it should be a wake-up call for employers running workplaces every single day, particularly those handling client confidentiality, financial data, trade secrets or sensitive personal information. For most tech-savvy individuals, the capabilities won’t come as a surprise: highdefinition cameras, built-in microphones, AI-powered optical character recognition (OCR), real-time translation, with augmented reality overlays also available. What may be less familiar is the legal exposure these devices create for businesses when they appear, unannounced, in a meeting room, at an office desk or at a client briefing.

constitute personal data from the moment of capture. The transparency principle is fundamental and covert recordings may breach UK GDPR where there is no appropriate lawful basis or where the recording is disproportionate to the purpose for which it was made. Depending on the circumstances, the employee and/or the employer may be regarded as a controller of the personal data captured, with corresponding obligations under data protection legislation. The Human Rights Act 1998 extends Article 8 rights to the workplace. An employee who discovers they have been recorded without their knowledge may, depending on the circumstances and their reasonable expectation of privacy, seek to rely on privacy and data protection rights. Serious breaches can attract significant regulatory penalties, including fines of up to £17.5 million or 4% of global annual turnover, whichever is higher. In the most serious cases, ICO investigations and compensation claims sit alongside that risk, as does reputational damage that no fine schedule adequately captures.

The legal framework is already in play Under UK GDPR and the Data Protection Act 2018, video footage and voice recordings

The intellectual property dimension Smart glasses may significantly increase the risk of unauthorised capture of confidential

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information. An employee can easily capture product designs, process documentation, financial data and client information while appearing to do nothing more unusual than wear spectacles. Evidence of that theft typically sits on a personal device, often beyond the reach of routine IT monitoring. In regulated sectors where confidentiality is fundamental, including finance, healthcare, law and any business handling commercially sensitive data, the ability to covertly record or transmit information creates risks that existing technology policies were not written to address. What policies need to say Employment contracts should explicitly address recording devices, including smart glasses, and specify that covert recording without legitimate justification may constitute gross misconduct and could potentially justify summary dismissal following a fair disciplinary process. That said, employers should acknowledge in those same contracts that recording may be justified in specific circumstances, such as obtaining evidence of discrimination, harassment, whistleblowing concerns or serious health and safety issues, since blanket prohibition without that nuance may not hold at tribunal. Bring your own device (BYOD) policies require updating to specifically cover wearable technology. Where use is permitted, written authorisation should be required, with employees confirming they will not activate recording functions on work premises. The practical difficulty, of course, is that compliance is hard to verify, and some devices cannot be configured to selectively disable recording. For businesses handling highly confidential information, a carefully drafted prohibition, subject to limited and clearly defined exceptions, is likely to be the most defensible position (subject to proportionality and the specific circumstances). Any policy should set out clearly where, when and how wearable technology may be used, how data captured by those devices is handled and what the consequences of a breach are. Training for managers and HR staff should not be overlooked. They need to understand that covert recordings may be admitted as tribunal evidence and to conduct workplace interactions with that reality in mind. Employers should also consider their obligations under the Equality Act 2010. In some circumstances, wearable technology may form part of a reasonable adjustment for a disabled employee, meaning that any restrictions on use should be assessed on a case-by-case basis. Prepare now The technology has developed faster than the regulatory framework designed to govern it and further AI integration will accelerate that gap. Waiting for an incident before updating contracts and policies is the highest-risk strategy available, when the exposure is already present. • Claire Scanlan specialises in employment law at Buckles Solicitors PQ Magazine September 2026

PQ careers PQ

Dear Karen Ask PQ’s very own agony aunt Karen Young when you need advice from a real expert. Email your dilemma to graham@ pqmagazine.com, and he will pass on the best ones to Karen

THE DILEMMA People tell me I need to be more proactive at work, but I’m not sure what that means in practice. What should I actually be doing day-today? KAREN’S RESPONSE It’s a question I hear often from people in the early stages of their finance careers, and I understand why ‘being proactive’ can feel less like a clear instruction and more like a vague expectation. For me, being proactive starts with taking ownership of your work, looking ahead and finding practical ways to add value before you are asked. Day-to-day, that can be simple: understand the expected outcomes and how your task fits into the wider picture. If something is unclear, ask early rather than waiting until the work is due. That shows you are thinking carefully about how to deliver the right result. Communication is also a big part of it. In busy accountancy teams managers may not have time to check in on every action. However, proactivity is not about saying ‘yes’ to every request. If you spot a risk, delay or recurring issue, raise it constructively and, where possible, suggest a solution. Take charge of your own development. Keep track of the technical skills you are building, ask for feedback after key pieces of work and look for opportunities to apply what you are studying in real situations. Ultimately, I see being proactive as less about grand gestures and more about consistent, thoughtful action. Start small: clarify expectations, communicate progress, offer ideas and learn from each experience. • Karen Young is a director at Hays. She is passionate about helping people to find the right job and companies the right person PQ Magazine September 2026

The lost firms Something is happening to the UK accounting profession. Rapport Digital looks into why the number of firms is dropping so radically

The UK has lost 3,745 accountancy firms since 2019, a drop of 8.6% across six years – that means the number of firms has dropped from 43,720 to 39,975. Analysis from Rapport Digital shows a story of consolidation and retirement rather than failure. Private equity (PE) has swept through UK accountancy at extraordinary speed. According to Accountancy Europe’s 2025 review, the UK is the most active market on the continent,

accounting for over 40% of all PE-backed accountancy deals in Europe. Crowe reports that as many as 20 of the UK’s top 60 firms are now private equity backed, including names like Grant Thornton UK, Evelyn Partners, Azets, Cooper Parry and Xeinadin. Retirement is the other pressure. The average age of a UK accountant is 46, according to CCAB figures, and the pipeline behind them has thinned badly: ICAEW, ACCA and CIMA enrolled

9,000 fewer students between 2017 and 2022. When a sole practitioner retires without a successor, that firm simply disappears from the register. An ageing profession with fewer new entrants means more of those quiet exits every year, and it’s a big reason 93% of employers report skill shortages in the sector. Check out more at: UK Has Lost 3,745 Accountancy Firms Since 2019.

You need to be qualified! The UK has decided to raise the bar on who can become a college CFO. New rules mean anyone who wants to be a CFO will need to hold a professional accountancy qualification. From 1 August 2027, further education colleges with more than 3,000 students must have a CFO who holds a qualification with ACCA, ICAEW, CIMA, CIPFA, or equivalent. The government handbook says any adverts must specify that the person should be a qualified accountant. The college must also inform the Department of Education If it is planning to appoint a new CFO who is not qualified, including an explanation on why it is not appointing a qualified accountant. See page 40 for more on this.

Human skills needed What are the human skills that are becoming more important as AI becomes more prominent in the workplace? Skills like communication, critical thinking, collaboration, adaptability and professional judgement all come to the fore. This is the topic of the second Balancing ambition podcast from AAT. In this month’s episode, AAT’s Zoe Smith sits down with Ali Jaw and John Toon. Toon says he sees AI affecting particular roles and particular jobs, but feels the profession will be fine. They both called on students to be curious and to be prepared to take on the challenges they face. Check out more here.

In brief Recruitment landscape improves The latest REC and KPMG UK Report on Jobs data shows a relative improvement in hiring conditions across the UK as the second half of 2026 began. Permanent staff appointments stabilised, following a 45-month period of decline, while temp billings rose further. Vacancies data meanwhile pointed to the first increase in demand for short-term workers for two years and the softest drop in permanent vacancies in 22 months. At the same time, pay indicators signalled stronger increases in both starting salaries and temp wages. While the availability of candidates continued to rise markedly, the rate of growth slipped to a five-month low, driven largely by a softer rise in temporary labour supply.

The PQ Book Club: books you should read Music is the answer: practical ways to manage stress, sleep better, and live brighter by Rob Stephenson (John Wiley & Sons, £21) As Stephenson says early on, most people instinctively turn to music to feel better without understanding why it works or how to harness its full potential. His book sits at the intersection of music, neuroscience and emotional wellbeing, and he wants to show you how to tailor music to help you de-stress and sleep well. We were drawn to the chapters on sleep and

restoration, and on focus, work and learning. When it comes to sleep it’s all about slowing our rhythms, softening our stress, and guiding us into rest. Think ambient tones and ocean waves, gentle piano playing or an acoustic guitar. When it comes to work, when you are trying to untangle a tricky spreadsheet, Stephenson says if you press play on the right track it helps you find your focus. One interesting thing about this book is the Gen AI disclosure at the front. We are told ChatGPT-5.1 was used across parts 1 and 2 to

assist with research and concept development, and parts 1, 2 and 3 to assist editing. For many people music has long been part of how they manage their own wellbeing, and as Alastair Campbell (yes, that one) says: “Stephenson explains the science behind that instinct – turning it into a practical guide for anyone navigating stress, pressure, or emotional fatigue.” PQ RATING: 4.5/5 The minute we put this book down we created a new playlist, so there must be something in it! 43

PQ the got a story, funny or serious, you want to share? Email graham@pqmagazine.com John Healey

Budget date set for 28 October 2026

So, how do you announce your first-ever Budget date? The new Chancellor John Healey had to write some letters – one to the Office for Budget Responsibility and another to the chair of the Treasury Committee (Dame Meg Hillier) for starters. The OBR needs to know because they have to prepare an economic and fiscal forecast, which accompanies the Budget. In his letter to Dame Meg, Healey warned his Budget will move power and money out of Westminster and into every postcode in Britain. Our only gripe is he ends the letter to her with ‘Yours ever’. We know it’s a traditional old-fashioned closing (like ‘yours always’ and ‘ever yours’), but what is wrong with a good old business letter approach and sticking to’ yours sincerely’? Here’s what ChatGPT said when we asked if it was OK: “No – it’s generally not appropriate for a formal letter. “For formal letters, the standard closings are: • ‘Yours sincerely’ – when you know the recipient's name (e.g., Dear Ms. Smith) • ‘Yours faithfully’ – when you don't know the recipient's name (e.g., Dear Sir or Madam) • ‘Kind regards’ – acceptable in many modern professional emails and less formal business letters • ‘Best regards’ – slightly less formal but widely used in professional correspondence “‘Yours ever’ is an old-fashioned, affectionate sign-off used between close friends, family members, or romantic partners. It can sound overly personal in a formal context. “So, unless you’re writing to someone with whom you have a very close personal relationship, it’s best to avoid it in a formal letter.” 44

Box-shifting to save tax doesn’t work How can you mitigate business rates on an empty property? Well, one company devised a plan to place boxes with redundant contents in otherwise unoccupied premises on a recurrent basis, to reduce liability for non-domestic rates by two-thirds. The firm claimed it had saved clients over £500m by using its box scheme. The City of London Corporation worked out the scheme was costing it £35m a year in lost revenue, and took the box-shifting company to the High Court. A judge ruled the scheme lawful, but now a Court of Appeal has sided with the Corporation. A spokesperson for the City of London Corporation said: “This landmark ruling closes one of the most widely used tax avoidance schemes in the country and helps

safeguard revenues that support essential public services. “We are proud that the City of London Corporation has led the way nationally in pursuing this case. For more than a decade, councils across the country have seen hundreds of millions of pounds of

public revenue lost through artificial business rates avoidance schemes and we believe the decision restores fairness, protects money that funds vital local services, and provides greater certainty for councils, ratepayers and property owners alike.”

Accountant turned assassin What is the best profession to pretend to be if you are an elite assassin? An accountant, of course! That is the premise in latest US action-adventure comedy Ride or Die, currently running on Prime. This is a story of girls on the run from a mysterious enemy. It’s lucky then that Judith Burton (played by Hannah Waddingham) isn’t an

accountant, but a highly trained assassin. Does that sound like The Accountant film to you? The big difference, of course, is in the film Christian Wolff (Ben Affleck) really is an accountant. The review aggregator website Rotten Tomatoes gave Ride and Die a 96% approval rating, so it might be worth a watch.

Weather vs tax PwC’s Colin Smith (pictured) decided he couldn’t fight against what people really want anymore. So he recently went online to give an Aberdeen weather update. As he explained: “It seems that people are more interested in

the weather than they are in tax, so I’m delighted to report that the view down Union Street this morning is much sunnier than it was yesterday. A very pleasant temperature – in the high teens.” Your job is done Colin!

You can’t tax this! The Rebel Accountant, aka Andy Oury, has launched his latest and fifth rap song as a timely reminder for the new PM Andy Burnham. ‘Can’t Tax This’ is an updated version of the 90s’ MC Hammer classic ‘Can’t Touch This’ in which Oury raps about the perils of a wealth tax. It can be viewed on his YouTube channel here. “If you tax the wealthy, they simply move their wealth offshore to tax havens,” he said. “And it’s a myth that wealth taxes hit only non-doms and trust-fund kids. The majority of wealth creators in this country are entrepreneurs, business owners and those founding and running companies. We need to encourage them, not drive them away.” Oury launched The Rebel Accountant project in March of this year, combining his passion for creating music with his day job as an accountant (he works for Oury Clark), and with a mission to help educate people about tax.

PQ Magazine September 2026