Will increased audit exemptions levels benefit you? John Davies discusses the pros and cons of maintaining an outside influence.

Action from audits

  • The DTI has increased the audit exemption threshold from a turnover of £1 million to a new limit of £5.6 million
  • From March, companies with an annual turnover of under £5.6 million are not legally required to have their accounts audited
  • An audit allows independent review of a firm’s accounts to confirm if they are prepared to best practices and within the law
  • Firms benefit from assurance that their records and internal controls have been reviewed and necessary changes noted
  • An independent audit remains the most trusted form of financial health check for a firm

Source

Electrical and Mechanical Contractor

Postscript

John Davies is head of business law at the Association of Chartered Certified Accountants.