Audit regulation - one year on

Article Abstract:

A survey was conducted to determine the effects of regulation on the auditing profession. A total of 160 practitioners participated in the study although only 64 responses were received as some replies represented more than one practitioners. Of the respondents, 77% indicated that regulation had improved their auditing practices through the standardization of recording work and quality control. However, 95% of the participants believed that their clients had not perceived any benefit from the regulation. Turning to other issues, 81% thought that small companies should be exempted from the compulsory audit while 47% favored the VAT cash accounting limit as an alternative threshold for exemption. Furthermore, majority of the respondents wanted safeguards when exemptions are granted. It was also found out that estimated set-up cost for firms with less than four partners amounted to 4,900 pounds sterling while recurring fixed costs reached 3,400 pounds.

Surveys

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The audit register: an interpretive muddle

Article Abstract:

A public register of individuals and firms authorized to serve as company auditors was established pursuant to the provisions of the Companies Act 1989 as part of the audit regulation regime. Eligibility as a company auditor is granted only to members of the Chartered Assn. of Certified Accountants and the three Institutes of Chartered Accountants. The creation of an audit register should have been a straightforward matter, but an analysis of its content as well as the changes to the audit exemption regulation casts doubts as to the register's structure and relevance as a public document. One of the major problems that need to be resolved is the inability of the three chartered institutes to develop a standard definition of a registered auditor.

United Kingdom

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Counting the cost of audit regulation

Article Abstract:

The new audit regulation procedures that have been jointly adopted by the Institute of Chartered Accountants in England and Wales, the Institute of Chartered Accountants in Ireland, and the Institute of Chartered Accountants in Scotland are expected to place a particularly heavy cost on both small practitioners and small companies. A survey of practitioners reveals that registered auditors wishing to comply with the new regulations face substantial set-up costs. The survey also reveals that audit regulation shall impose an additional cost estimated at 375 pounds sterling to the cost of preparing a small company audit. The survey indicates that, as a result, many of the practitioners now favor the abolition of the small company audit.

Accounting, auditing, & bookkeeping, Column, Accounting and auditing, Small business, Institute of Chartered Accountants in England and Wales, Institute of Chartered Accountants of Scotland, Institute of Chartered Accountants in Ireland

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