FDs back decision to increase audit limit to £1m
Finance directors of small and medium-sized firms say they will benefit from the government's decision to raise the audit threshold from £350,000 to £1m.
Almost 50% of FDs back the rise, according to this week’s Accountancy Age/Reed Accountancy Personnel Big Question survey.
FDs favouring the hike see advantages in a reduction of costs. Nick White, finance director at Bedfordshire Training and Enterprise Council, said: ‘This will benefit small and medium-sized companies.’
But many warned the move only scratched the surface in lifting red tape from smaller companies. ‘The increase will definitely help SMEs … but it does not compensate for the bureaucracy that SMEs have to contend with,’ said one FD.
But one in four FDs voiced concerns that companies exempt from the annual audit could face problems with banks. ‘It will save costs, but may get a bad reaction from banks,’ said one FD.
Accountancy Age: £1m audit threshold set – £4.8m threshold to followhttps://www.accountancyage.com/Practice/601823
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