Its long-awaited proposals are expected to recommend the government raise the audit exemption limit to a turnover of Pounds 4.8m – the European Union maximum.
The move will put pressure on the government to act on its commitment of over a year ago to bring in the new threshold. The current threshold is £1m.
To ensure some assurance is available to companies exempt from audit, the Review has proposed the independent professional review, a ‘lightweight’ and less costly form of assurance.
David Wood, deputy director of auditing and accounting services at ICAS, said: ‘The government can move reasonably soon if it wants to. It’ll probably be a one-step move. Either they will announce the audit threshold hike with no provisions, or they’ll announce it [and IPR] together.’
Many accountants also support the idea. However, there are opponents, including Jonathan Beckerlegge, chairman of the audit committee at the Association of Chartered Certified Accountants.
He said: ‘I’m expecting an increase. But personally I hope that Patricia Hewitt is confident enough to think again. It’ll be a disservice to the community.’
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