Changes in UK audit requirements

In first part of 2013 the EU made amendments to the Accounting Directive allowing national governments to make changes to the exemption threshold, which means that the audit exemption threshold is expected to rise and it could affect a vast number of UK businesses.

The UK has done it before: in 2009 the threshold rose to turnover of £6.5m, fewer than 50 employees and gross assets of £3.26m.

The stated policy of government has been to push exemption upwards once again to turnover of £10m and observers expect the new limits to be confirmed in late 2014 or early 2015, though consultation papers containing detailed proposals have yet to emerge.