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 proposals.
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.