Rising Audit Costs A Concern For Private Companies

Tue, 29 Apr 2008

Private companies in the UK may soon be forced to cope with a sharp increase in audit costs, an industry expert has warned.

According to Paul Boyle, chief executive of the Financial Reporting Council, changes to audit practices in the US are almost certain to affect international standards on auditing .

As a result regulations could become increasingly complex for companies to understand and the price of audit work could be forced up. "At the top end of the market it may be bearable, but not at the private end of the market," explained Boyle.

He added that the changes may lead to a renewed debate about the practicality of UK audit regulations, which currently apply a single set of standards to both listed and private companies .

The warning follows on from the ICAEW’s (Institute of Chartered Accountants in England and Wales ) call for UK and European legislators to act to reduce the administrative burden placed on small and medium businesses .
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