BusinessCompany NewsSMEs see audits as ‘mechanical’

SMEs see audits as 'mechanical'

Around half of small to medium sized companies view their audit as a largely mechanical process that adds little or no value, a survey has found

Of the 200 companies surveyed by KPMG, 56% said they saw their audit as more
or less exactly the same each year. Only 40% agreed that the audit was useful in
providing recommendations and learning points for the business as a whole.

Nearly half of companies – 47% – only occasionally or never meet with their
auditor outside the audit season, despite the fact that nearly two thirds of
them – 62% – recognise that there is a strong link between the strength of the
relationship that they have with their auditor and the value they derive from
it.

KPMG’s head of audit, Richard Bennison, said a strong and open relationship
between a company and its auditor is vital if the audit is to produce the
far-reaching benefits it is capable of producing.

‘However, our research suggests that companies in the middle market fall into
two roughly equal camps: those that are getting real value, and those that are
not. Our profession could in some cases do more to deliver a greater range of
insights,’ said Bennison.

Related Articles

M&S business rate liabilities based on £570m rateable value

Company News M&S business rate liabilities based on £570m rateable value

4m Emma Smith, Managing Editor
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

8m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

1y Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

1y Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

1y Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

1y Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

1y Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

1y Emma Smith, Managing Editor