BDO UK looks for financial instrument valuation efficiencies

BDO UK uses Hedgebook as its independent financial instrument valuations solution - including FRS 201 compliance in checking mark-to-market is correct on all outstanding financial instruments at year end.

Hedgebook: independent financial instrument valuations

As one of the largest accountancy firms in the UK, Hedgebook is delighted to have BDO UK using Hedgebook Audit software as its independent financial instrument valuations solution. Hedgebook Audit is a tool for auditors to validate the valuation of financial instruments as part of the annual audit process. In the UK, the accounting standard FRS 102 requires most companies to mark to market all outstanding financial instruments at year end. Equally, auditors are required to check these valuations are correct. Having an easy to use and inexpensive tool to do this has resonated with many accounting firms in the UK and Europe.

Uncovering financial instrument valuation efficiencies

Continued scrutiny by the Financial Reporting Council on financial instruments disclosures and measurement has encouraged change. Long gone are the days of auditors relying on bank valuations when validating clients’ FX and interest rate derivatives. BDO UK recognised it requires an efficient and cost-effective way to ensure its Audit and Assurance service remains robust and transparent with regards to financial instrument valuations.

Rob Frost, Director, Technical Standards Group, comments:

“BDO takes its relationship with the key UK regulators very seriously. The changing regulatory landscape presents a number of challenges to the Audit and Assurance team, but technology can help BDO meet its obligations and streamline the audit process. Efficiencies in financial instrument valuations by using tools such as Hedgebook Audit adds further rigour to the audit process but without adding time and expense.”

As the audit industry continues to go through some major structural changes, it is firms like BDO that will benefit. The stranglehold of the Big Four accounting firms is loosening. Accessing the appropriate technology is an important part of this transition for those firms that want to compete for the large audit customers.

BDO UK well down digital path

We are already seeing it is firms other than the Big Four who are more agile in adopting the appropriate digital solutions which will make audits more efficient and cost effective. Audit fees are unlikely to increase in this competitive environment, so efficiencies need to be found. Adopting technology is one of the answers to this problem. BDO is obviously well down the digital path and Hedgebook is proud to be part of that journey.


If you’d like to learn more about how accountants use Hedgebook – check out our Auditors page or our eBook on year-end valuations and reporting.