Directors view on exemption audit.

INTRODUCTION This poll was commissioned by the Department of make do and intentness (DTI) in February 2003 and supports the governments stance on testify- ground policy making. The stimulate of the seek is to investigate issues in connection with size up license by examining the views of the directors of private limited companies that fall deep down the European residential area size thresholds for a venial entity. The main issues investigated are plunge levels of audit freedom, cost nest egg and the factors that have a remarkable influence on the directors finis regarding a voluntary audit if thresholds in the UK were raised to the EC maxima. At the time of the resume these were disturbance £4.8m, balance piece of paper sum up £2.4m and number of employees 50. The search was designed as a large-scale postal questionnaire survey, preceded by a subtile number of preliminary interviews with auditors and small family directors to develop the questionnaire. The study provides evidence that size is not a sufficient measure on its own for capturing the costs and benefits of the audit. on that point are different qualitative factors that have a evidentiary influence on the directors decision on whether or not the accounts will be audited on a voluntary basis.

THE SURVEY The study is based on the analysis of 790 postal questionnaires received from a state of 2,633 active, independent, unlisted, private limited companies filing full accounts. This represents a rejoinder rate of 30%. The companies were selected on the basis of their 2002 accounts providing figures that showed that they had a upper limit overturn of £4.8m, maximum balance sheet t otal of £2.4m and up to 50 employees. (EC M! axima Standards) LIMITATIONS OF THE SURVEY The selection of companies on the basis of turnover was essential, as this is the key measure of size for audit exemption in the UK. However, If you want to get a full essay, put in it on our website: OrderEssay.net

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