The Institute of Chartered Accountants of
Scotland (ICAS) has expressed concerns that the benefit of audit to
the economy is not fully recognised by the UK Government.
In it’s response to the Department for
business, innovation & skills (BIS) consultation paper on
audit, ICAS welcomed the proposals on audit exemptions and change
of accounting framework but said it would not support plans to
significantly increase the audit exemption threshold.
The institute also questions whether there
will be a large take up by business of the subsidiary exemption
ICAS has also raised doubts on the option of
reducing audit requirements for unlisted companies, especially in
the current economic environment.
Commenting the proposals, the Institute also
noted it anticipates the saving in the audit fee will be less than
forecasted as in the case of small companies “one will sometimes
find that it is difficult to ascertain whether certain costs
pertain to the accounting or to the audit work,” ICAS wrote.