Consultation to end audit requirements for small firms
Monday 10 April 2006
A consultation paper outlining proposals to remove the statutory audit requirements for small firms and Appointed Representatives has been issued by the Financial Services Authority (FSA).
With the average cost of a statutory audit costing between £2,150 and £3,370, the FSA estimates that, if introduced, it would save 3,200 small firms and 1,490 Appointed Representatives £12.9 million each year.
“Small limited liability companies currently compete with sole traders and partnerships which are not subject to audit. We are working to produce a level playing field for these small firms which should promote competition and thus bring benefits to consumers,” says Stephen Bland, FSA director of small firms.
The proposals have the backing of the Department for Trade and Industry (DTI) and, if accepted, necessary steps will be taken to implement changes to company legislation and the FSA Handbook.
The consultation, which started on April 7, will run for two months, and further information on the proposals and how to respond can be found by clicking here.
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