ICAEW has been forced to update guidance after two firms with similar names mixed up.

The updated guidance is targeted at firms looking to become audit registered or registered firms wanting to change their name in a bid to reduce the risk of confusion between firms.

ICAEW warned that confusion over names raises ‘the risk of potential reputational damage to the firm with no connection to the reported issue’.

Existing guidance makes it clear that a firm’s name should not be misleading, and the revised version underlines the importance of following the recommendations.

ICAEW cites examples of unacceptable practice as when a member firm with very few offices describes itself as international, or if a sole practitioner adds the suffix ‘and Associates’ to the name, or using a name which is very similar to another, creating a ‘real risk that it could be confused with the name of another unconnected firm’.