Raising the audit threshold

Raising the audit threshold

The government is considering raising the audit threshold for small companies to the European maximum of £4.8m with a 'lighter touch' independent professional review for business with a turnover under this limit.

The publication of new research into the independent professional review, a light-touch form of assurance, is believed to have persuaded the government to raise the threshold from its current level of Pounds 1m much earlier than expected.

The IPR is designed to offer investors and lenders assurance for companies with a turnover of between Pounds 1m and Pounds 4.8m that will be exempt from the audit as recommended by the company law review steering group.

The final report of the company law review steering group said: ‘If the DTI determines that the [APB] trials demonstrate a sufficient saving over the costs of full audit’ the IPR should be used for companies in the £1m to £4.8m turnover range. If not, we recommend a total exemption for all small companies.’

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource