Changes to audit thresholds will
produce a number of conundrums for group auditors, says John Major
It has always been possible that a medium size or large UK group
might include an unaudited subsidiary if the subsidiary is an overseas
company and does not require an audit under local legislation.
As of 1 October 2012, this possibility greatly increases, with
government’s changes to the thresholds to align mandatory audit
thresholds with accounting thresholds. This means more SMEs will obtain
an exemption from the audit, if they meet two out of three criteria
pertaining to balance sheet – a total less than £3.26m,
turnover – of less than £6.5m and number of staff - 50
employees or less.
The
