I spoke recently at a CA ANZ event on Business Succession and Exit Planning and was interested to hear the increased attention and focus on APES325 – Risk Management for Firms and specifically para 4.2 which includes “governance risks, business continuity risks (including succession planning), business and financial risks…”, all of which are key areas of our risk assessment of businesses as part of our stage one report and ongoing work we do with clients to maximise business value and help achieve a successful exit.
CPA Australia has also issued similar guidance – including the questions; How do you plan for succession? How do you attract and retain key personnel? Do you have a locum for times of illness or absence? Do you have a disaster recovery plan? Do you have a practice exit strategy? And go on to say that “partners or the CEO have ultimate responsibility and should be involved in development, implementation, review and monitoring.”
All very interesting for all business owners to consider in terms of risk management and succession planning – but I would suggest that like the plumbers’ leaky tap – accountants in public practice may not have this sorted!
I would be very interested in your feedback (especially as an accountant in public practice) as we are currently developing a solution for accountants to implement to meet these requirements.