Audit firm numbers slump
The ICAEW reveales that the number of audit firms registered with the institute has dropped below the 5,000 mark as the impact of the audit threshold rise kicks in
The ICAEW reveales that the number of audit firms registered with the institute has dropped below the 5,000 mark as the impact of the audit threshold rise kicks in
As of the end of April, just 4,990 audit firms held their registration with
the ICAEW – a massive drop from the 6,671 firms registered at the end of 2001.
The institute said the decline was largely the result of the government’s
decision to raise the audit exemption threshold, initially from £350,000 to £1m
and then to £5.6m in 2004.
An ICAEW spokesman said of the worrying fall in numbers: ‘I think it is what
we would expect. It doesn’t come as any surprise.’
The news followed regulator figures showing that the ICAEW’s membership had
virtually stalled, rising by just over 300 to 110,776 between 2003 and 2004.
There were also 800 member resignations in the first three months of this year.
The ICAEW has recently been accused by rivals of overly aggressive
recruitment tactics to boost numbers – ‘cold-calling’ CIMA members to take up
the ACA qualification – and asking its members in the FTSE100 to help with
recruitment.
Scottish institute ICAS has also seen a fall in registered firms – from 482
in 2001 to 374 in 2004. ACCA saw its numbers peak at 3,112 in 2002, falling back
to 2,880 in 2004.
In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...
View resourceIn recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...
View resourceIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceThe first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...
View resourceThis follows an investigation into undisclosed personal loans and issues with an acquisition. Despite challenges, the company aims to achieve £1bn in ...
View articlePwC's decision to delay promotions in its graduate scheme, affecting around 100 graduates, is a response to reduced client demand and the aftermath of...
View articleTraditionally, audit schedules have been prepared manually, consuming significant time and resources. However, with the advancements in Artificial Int...
View articleThe FRC is promoting initiatives to foster a more competitive market, following recent high-profile accounting scandals. Read More...
View articleOn January 27, it was reported EY had quit as auditor to Asda amid one of its senior partners starting a romantic relationship with billionaire chief ...
View articleDespite the increased interest in AI and ML, only 12% of respondents indicate their organisations have adopted AI and ML within their audit functions....
View articleAs the government's independent investigation progresses, it is hoped that a clearer picture will emerge, leading to meaningful reforms within the aud...
View articleThe proposed enhancements, including the focus on material misstatements arising from non-compliance, the introduction of a risk assessment process, a...
View article