Death knell sounds for small company audit
The abolition of the statutory audit for companies with turnover of less than £4.8m is expected as part of the biggest shake-up in UK company law tomorrow.
Melanie Johnson, competition minister, will unveil the biggest shake-up in UK company law in 150 years with the publication of a white paper.
The long-awaited scrapping of the statutory annual audit for companies with turnover of less than £4.8m is expected. Other proposals include tightened corporate governance procedures on directors’ duties and a new operating and financial review.
Johnson has said the reforms will save small businesses £170m a year.
Publication of the white paper comes a year after trade and industry minister Patricia Hewitt unveiled the findings of a three-year long review of company law, undertaken by the DTI.