How firms are plugging the audit gap
As predicted the increase in the audit threshold last October to the European maxima of (two from) £6.5m turnover/50 employees/£3.6m balance sheet total assets has caused many smaller firms to reconsider their audit registrations.
But if that work goes, what are they doing to replace it? The question arose at the recent CCH conference in London, and the answers from practitioners pointed to closer involvement in clients’ business processes and doing more work for less cost through the effective use of technology.
“When I started, we were historians. Now I have to work with where we are today,” commented one small practitioner.
Laura Ambrose, a partner with Haslers in Loughton, Essex, agreed and said her firm was moving more into strategic support and “hands-on” work with clients. “Knowing what’s around the corner is what it’s all about,” she said.
As a 12-partner firm, Haslers has the resources to cover the costs of compliance and training, but she was aware that firms with just a few partners were turning away from audit.
With that work in decline, Ambrose explained why Haslers is focusing on business strategy and helping firms to grow...