{"id":25346,"date":"2024-05-20T11:35:39","date_gmt":"2024-05-20T10:35:39","guid":{"rendered":"https:\/\/www.langricks.com\/?p=25346"},"modified":"2024-05-29T12:02:01","modified_gmt":"2024-05-29T11:02:01","slug":"government-consultation-on-increasing-audit-limits-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/dev.withcreative.co.uk\/langricks\/government-consultation-on-increasing-audit-limits-what-you-need-to-know\/","title":{"rendered":"Government Consultation on Increasing Audit Limits: What You Need to Know"},"content":{"rendered":"<p>In recent months, the government has embarked on a consultation process to consider raising the audit thresholds for businesses. This move is part of a broader effort to reduce regulatory burdens on smaller companies and to streamline compliance processes. But what does this mean for businesses?<\/p>\n<p>Currently, businesses are required to undergo an audit if they meet two out of three criteria:<\/p>\n<ul>\n<li>Annual turnover of more than \u00a310.2 million.<\/li>\n<li>Assets worth more than \u00a35.1 million.<\/li>\n<li>More than 50 employees.<\/li>\n<\/ul>\n<p>These thresholds aim to ensure that larger companies, which typically have more complex financial activities, are subject to an audit, thereby safeguarding stakeholders\u2019 interests.<\/p>\n<p>If the new measures are adopted, Micro entity thresholds will move from not more than \u00a3632,000 turnover to not more than \u00a31m. For small businesses, it will increase to not more than \u00a315m turnover, from \u00a310.2m. The medium business threshold will move to not more than \u00a354m. Everything above that would classify as a large company. The balance sheet total thresholds would increase to not more than \u00a3500,000, \u00a37.5m, \u00a327m and anything above \u00a327m respectively.<\/p>\n<p>The government intends to consult later this year on amending the definition of a medium-sized company for company reporting. The threshold on the maximum number of employees that classifies a medium-sized company would increase from 250 to 500. It will also consult on exempting medium-sized companies from producing a strategic report, and taking smaller public interest entities out of audit tendering and rotation requirements.<\/p>\n<p>The government intends that companies will be able to benefit from the changes for financial years starting on or after 1 October 2024.<\/p>\n<p>Speak to us about your audit needs at info@langricks.com<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In recent months, the government has embarked on a consultation process to consider raising the audit thresholds for businesses. This move is part of a broader effort to reduce regulatory burdens on smaller companies and to streamline compliance processes. But what does this mean for businesses? Currently, businesses are required to undergo an audit if [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":25347,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[1],"tags":[49,70,75],"class_list":["post-25346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-articles","tag-vat-tax-hmrc","tag-accountants","tag-audit"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Government Consultation on Increasing Audit Limits: What You Need to Know - Langricks Chartered Accountants and Business Advisers<\/title>\n<meta name=\"description\" content=\"Government Consultation on Increasing Audit Limits: What You Need to Know\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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