VINCE CABLE’S DECISION to lower the audit exemption threshold will damage the ability of advisors to sell their services, according to Accountancy Age readers.
More than half (53%) of the 86 readers polled voted against the move, which will allow more companies to opt out of statutory audits. Nearly a quarter (24%) felt more businesses should be taken out of statutory audit to free them of red tape, while 13% felt the threshold had been set correctly. Just 10% said slightly more businesses should be included.
Under Cable’s (pictured) plans, announced earlier this month, changes to reporting and auditing requirements will allow more small businesses and subsidiaries to decide whether or not to have an audit. The proposals will also make it easier for companies to move from IFRS to UK GAAP.
Current UK rules mean SMEs must both have a maximum balance sheet total of £3.26m and less than £6.5m turnover to qualify for an exemption.
The new regulations mean SMEs will be able to obtain an exemption if they meet two out of three criteria relating to balance sheet total, turnover and employing no more than 50 staff.
Vote in the latest Accountancy Age poll:
Given the events of the past week as we enter new territory our SMEs now more than ever need the support of their accountants, writes Bobby Lane
The Financial Reporting Council has launched an investigation into the conduct of the Big Four firm in relation to its audit of BHS
The FRC says it best when it says nothing at all
Audit competition will drive many changes, but increased audit quality is extremely questionable