PracticeAuditAudit threshold probe finally underway

Audit threshold probe finally underway

After repeatedly being delayed, the Department of Trade & Industry has finally begun its a 'programme of research' to assess the impact of the £1m audit threshold for small companies, which has been in place since July 2000.

Link: PBR in depth: Audit threshold unlikely to rise

Companies, who have turnover less than £1m are not subject to an independent financial audit – prior to this the limit was set at £350,000.

The DTI will seek to find out what the costs and benefits of this increase have been and is particularly keen in obtaining ‘statistical information’.

The information will be used to inform on further consultation proposed for summer 2003, which will decide whether the threshold should be raised or be maintained at its current level.

Sources at the DTI told Accountancy Age earlier this month that the audit threshold was unlikely to rise to the European level of £4.8m in the short term.

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