You might also be interested in
Replies (13)
Please login or register to join the discussion.
I have always thought ...
... that there should be some sort of statutory assurance report for any company with turnover between the VAT threshold and the audit requirement, just to focus on the financial aspect, and not all the other bits that go with an audit (going concern review, compliance with legislation etc etc) to be signed off by regulated firms, and the files for which are subject to monitoring. We did have this for a brief period and I never understood why it was relaxed.
No half measures
Compulsory Audits should just be for plcs
If you run your own business, even if its turning over £50m, why should you pay for something you dont want.
It says above ''Audits and the files are not for regulatory benefit'' beg to differ in my opinion there are 2 halfs to an audit
a) The part you make sure the numbers are right..which is what the client wants
b) The days and days you spend filling in regulatory checklists..which is what the regulators want and the client doesnt care about
As an auditor you have do both prperly and if you dont want to or can't be bothered, you dont have to do it, go and work on something else.
The opinion from the coal face...
Half measures
I agree about the audits not being aimed at smaller companies but I can also agree with some clients wanting an audit. We were told on a seminar that auditors should not be producing audit work purely for the Institute regulators but for the benefit of clients and the firm itself which I agree whole heartedly with and so did one Inspector who came to visit us last year.
I for one don't see these proposals coming in as too many politicians have tried this before and it's never happened. I say we should simplify as much as possible and make audits fit for purpose which will please everybody.
Abbreviated accounts
If Vince Cable's proposals to scrap the abbreviated accounts what will take their place? Would he remove the requirement to fill accounts at all or will he require full statutory accounts to be filed. This is an increased disclosure requirement which will cost money not save it
As other comments have said, I get my abbreviated accounts by clicking the "Abbreviated" button my accounts production package. Alternatively, just complete the downloadable version from Companies house
I'm confused :(
Eligible companies don't 'have' to file abbreviated accounts, but they might chose to do so. Conversely they 'have' to have full accounts for the members and HMRC. Accordingly the abbreviated accounts are not a compulsory burden but an optional extra.
Has Mr Cable given up on his campaign to make the banks lend? Seems like it, but he's been noticeably quiet for a while! lol So this worthless sop to 'small businesses' is presumably him easing back into things? Shame really, I thought he could have made something of the banking situation.
Filing
Companies do have to file accounts that's why they have the ability for limited liability. Surely these proposals go against this concept as if they're not going to be publically available then how can this be in line with company law?
The old adage "if it ain't broke don't fix it" springs to mind.
Consolidated Accounts
Why not tackle the most ridiculous change in recent times of medium sized groups having to prepare group accounts. This is the biggest waste of time and money for the client with absolutely no benefit to any one. The sooner this is got rid of, the better.
Why not..................
................ just abolish Vince Cable.
I am sure THAT would save a vast amount of money. :-)
Lets be serious
Other than being forced to by statute, the requisite number of shareholders or the bank, who on Earth is going to choose to be audited (and pay for it)?
I still don't really accept that for the majority of SMEs that require an audit there is anything that can be done in practice to make it a worth while experience for them especially considering the costs, not just in terms of the audit fee but time management time spent answering questions and so on.
Audit Exemption USA subsidiary
I have had an enquiry this week from a US company based in 'the valley'.. to set up a subsidiary company in the Uk, to take a number of employees in the UK.. I have discussed the amount of the audit fee, for the work to be done on a small company.. and suggested it could be cheaper elsewhere in the EEA. A Doggett FCA
Audit requirement
In some respects I am a purist, if a company has the reight to claim Limited Liability then it has the obligation to file financial statements in the correct format, available for public view and the public has the right to know that the accounts are, in fact, "true and fair". I know the report of the auditors was to the shareholders but the company gains from Limited Liability, let it pay its obligations. Anything else is just window dressing
Consolidated Accounts for medium sized companies
Agree totally and completely with this statement. But its the numpties that put forward these proposals in the first place that we should be replacing.
I think they are setting themselves up for a fall ...
An audit I'd a great way to add value to a clients business by taking an active role in understanding their internal controls and systems, an thoroughly reviewing their financial information.
It isn't as big a burden as the constant increases in employment legislation.
If they do increase the threshold I am certain you will get more tax and corporate fraud.