Article: Audit Exemption: the sky's the limit?

The recent decision to increase the audit threshold and the effect of this legislation on credit granting was reported earlier in the year. Here, John Davies looks at the other factors that impact on the decision to opt for an audit, and warns businesses to look long term.

As from March this year, private limited companies which report annual turnover of up to £5.6m are exempt from the legal requirement to have their accounts audited. The DTI estimates that the increase in the audit exemption threshold, from £1m to £5.6m, will affect around 60,000 UK companies.

The Government has presented this reform as an example of its commitment to sparing British businesses from the need to comply with ...

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