PracticeConsultingRise in audit threshold not a threat to accountants, says CIMA

Rise in audit threshold not a threat to accountants, says CIMA

CIMA has welcomed the government's announcement yesterday of a rise in the audit threshold.

Stephen Byers, trade secretary, said yesterday he was raising the statutory audit threshold from £350,000 to £1m for all period ends after July 31, 2000. He also said he would introduce a new limit of up to £4.8m at some point in the future – with some form of ‘lighter assurance’ for companies with a turnover between £1m and £4.8m.

Tony Dart, CIMA’s Director of Technical Services, said:’CIMA strongly favours any measure which eases any excess regulatory burdenon smaller business. Many business people see the bureaucracy imposed onthem as a lead weight holding them back; and they count audit as being partof that weight.

‘What small businesses need and want is help in increasingthe viability of their businesses. What they seek is the pure gold ofservices that create wealth for them.

‘Raising the audit threshold is an opportunity for accountants. It’s not athreat. They will be able to offer more worthwhile services that add valueto small business.

‘Few small business owners are interested in independent reports on pastperformance. They expect clear, justified recommendations as to the bestfuture course of action to adopt. That is the value they seek, not theattestation or certification about what they themselves have decided anddone.’

For full details of yesterday’s announcement, click here.

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