To Audit or Not to Audit: That is the Question
News release
28th September 2012
Accountants Duncan & Toplis are advising small businesses in the East Midlands to seek professional advice before taking advantage of new rules and deciding not to audit their accounts.
Business Secretary Vince Cable has announced that from 1st October 2012 many small businesses will no longer be required to subject their accounts to an audit.
But David Gratton, an audit partner at Duncan & Toplis, says businesses would be wise to consider the benefits of an external audit before they opt to discontinue the practice.
“This announcement means a welcome cut in red tape, but small businesses should consider continuing to have some form of audit or assurance reporting on their financial statements in spite of the fact that an audit is no longer mandatory,” said David.
“They should be mindful of the requirement by many lenders to have audited accounts – it provides banks and investors with a welcome level of assurance.
“Auditing accounts also gives peace of mind to small business owners who may be relying on individuals to maintain the company’s books and records.”
The Department of Business Innovation and Skills announced earlier this month that small businesses will not need to subject their accounts to an audit if they meet two out of the three qualifying criteria for small company accounts:
- if they have fewer than 50 employees
- if their gross assets are no more than £3.26 million
- if their turnover is below £6.5 million
Current UK rules state small and medium-sized enterprises (SMEs) must have both gross assets below £3.26m and turnover less than £6.5m to qualify for an exemption.
The change will allow 36,000 more companies to choose not to have an audit.
Vince Cable said these changes would save small businesses time and money. “Tackling these problems will help save UK companies millions every year and free them up to expand and grow their business, which ultimately benefits the entire British economy,” he said.
If you would like advice on assurance reporting as an alternate to a mandatory audit, please contact your nearest Duncan & Toplis office.
Notes to editors
- Duncan & Toplis was established in 1925 and has since grown into one of the largest independent firms of chartered accountants in the Midlands.
- The company has 10 offices throughout the East Midlands: in Grantham, Boston, Lincoln, Louth, Melton Mowbray, Newark, Skegness, Sleaford, Spalding and Stamford.
- Duncan & Toplis offers a wide range of services to small, medium and large-sized family businesses, from accountancy, audit and tax to payroll, human resources and computer services.
- The business employs around 300 staff, of whom 85 are currently engaged in professional training.
Jez Ashberry
Shooting Star PR
01522 528540
jez@shootingstar-pr.co.uk
www.shootingstar-pr.co.uk
t: @jezashberry
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