PracticeConsultingFDs back decision to increase audit limit to £1m

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 followhttp://www.accountancyage.com/Practice/601823

FREE OFFER: Tell your clients about the rise in the audit threshold

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer