Audit exemption limits... on the up?
Draft regulations published by BERR (did you know this is the new name for the DTI?) have outlined increases in the size criteria for audit exemption. These are proposed to be effective for financial years beginning on or after 6 April 2008
| Turnover | Balance sheet | total | ||
| Old | New | Old | New | |
| Small Companies | £5.6M | £6.5M | £2.8M | £3.26M |
| Small Groups | £5.6M | £6.5M | £2.8M | £3.26M |
| (gross) | (£6.72M) | (£7.8M) | (£3.36M) | (£3.9M) |
| Medium Companies | £22.8M | £25.9M | £11.4M | £12.9M |
| Medium Groups | £22.8M | £25.9M | £11.4M | £12.9M |
| (gross) | (£27.36M) | (£31.1M) | (£13.68M) | (£15.5M) |
The move by the BERR seems to follow government’s general drive to keep small and medium enterprise competitive and alleviate some of the regulatory burden that they face, especially for those smaller, growing entities.
However don’t forget that many audits can ‘add-value’ to your company, whilst also providing the additional comfort required by many lenders.
