The Irish government is planning to increase the number of businesses exempt from mandatory audit to the maximum level permitted under European law.
The new thresholds will allow companies with a turnover of less than €8.8m ($12.5m), a balance sheet of €4.4m and fewer then 50 employees to be exempt from the statutory audit requirement.
The previous threshold was 20% less, with €7.3m for the turnover and €3.65m for the balance sheet.
The Minister for Jobs, Enterprise and Innovation Richard Bruton expects to save Irish SMEs up to €5m per year, with an estimated minimum of 1,000-2,500 companies benefiting from the move.
Bruton said the total cost of Government-imposed regulation on Irish business has been estimated at €2bn per year and the change “will mean that a minimum of 1,000 extra businesses will not have to spend the money and time necessary to engage auditors”.
As of yet the ministerial regulations are still to be drafted and there is currently no company implementation date.