One in 20 Audit Firms Quit as Market Evolves

Within the last time there has been a continued decrease of firms which provide audit services. The reason for this might be the regulatory and legislative edicts.

Watchdog Financial Reporting Council published a report called “Key Facts and Trends”, it shows that 304 practices have ditched their audit licences since December 2014.

Smaller audit firms had to deal with regulations that pushed clients out of the statutory audit. The government announced in January that the audit exemption threshold would be aligned with the revised ‘small company’ thresholds, which exempts companies that meet two of the three following criteria:

  • Turnover of less than or equal to £10.2m
  • A balance sheet total of less than or equal to £5.1m
  • Employee number fewer than or equal to 50

In addition to that the report highlights an important direction of travel for the large end of the audit market.

 

 

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