ACCA deals further blow to IPR
Raising the audit threshold to £4.8m is not conducive to good corporate governance and could lead to increased mismanagement, the Association of Chartered and Certified Accountants said this week.
In a further blow to the Independent Professional Review – mooted in the Company Law Review as a ‘lighter touch’ audit for companies with turnovers of up to £4.8m – ACCA said it was backing lenders in supporting the current £1m limit.
Earlier this month the ICAEW council withdrew its support for the IPR.Jonathan Beckerlegge, chairman of ACCA’s audit committee, said: ‘We are concerned small firms will be obliged to pay for an IPR and also for any additional assurance which the banks may seek.
‘The logical solution is to keep the audit threshold at a sensible level.’