Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Proposed audit legislation: Good for business or political posturing?

By Becky Subscribe to RSS | March 14th 2012 | Views:
loading
 
  



219 businesses across the UK responded to a recent survey with their thoughts on audits, reporting and changes being proposed.

Thumbs up for audit

• Only 34% of businesses which currently have an audit would like to be released from the perceived ‘audit burden’.

• The main benefit stated was that an audit helps to ensure good governance within a business. The reasoning behind this response is the fact that whilst raising the audit threshold may be beneficial to certain businesses, others will continue to want some of audit if only for their own comfort.

Auditor commentary

• Almost 60% of respondents thought that providing additional auditor commentary on matters significant to the users’ understanding of the audited financial statements would not be a good idea, in particular if it increased costs.

• The main message was that auditors should steer clear of subjective comments because the scope for inconsistency was too great and the result may be that the value of audits would decrease.

Thumbs down for excessive financial reporting requirements

• A whopping 78% did not believe that reducing the clutter in annual reports would devalue them; in fact one respondent felt it would increase their value.

• Respondents felt strongly that disclosures should be relevant to the size, complexity and risks of the business not a ‘one size fits all’.

• FRS17 was extremely unpopular: too long, too involved and of little use to anyone.

Keep costs low

• Businesses are keen to ensure legislation is relevant to a company’s size.

• With a number of changes to audit being discussed in the UK and Europe our respondents agreed that any additional costs of these should not outweigh the advantages that the audit provides.

Conclusion

For many businesses, increasingly complex accounting rules and the volume of information required are seen as the burden, rather than the audit itself.

Becky - About Author:
Find out more about audit companies.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/finance-articles/proposed-audit-legislation-good-for-business-or-political-posturing.htm

Related Finance Articles Subscribe to RSS

How to choose the best dividend paying companies
Published by Isol on August 13th 2012 | Finance


Finding and investing in a dividend paying company is quite a bit easier than finding a com...
 
Proposed audit legislation: Good for business or political posturing?
Published by Becky on March 14th 2012 | Finance
219 businesses across the UK responded to a recent survey with their thoughts on audits, reporting a...
 
New York Search Engine Optimization helps in developing companies
Published by Ricky Martin on June 25th 2012 | Finance
Companies providing New York Search Engine Optimization solutions in New you're ready to rent extrao...
 
What Commercial Loan companies Need to Confirm Commercial Loans
Published by Timothy Powell on May 21st 2012 | Finance
Commercial loans are most usually utilized to buy commercial buildings or premises for new or establ...
 
Debt Settlement and its companies
Published by Rajkumar Kaushal on May 17th 2012 | Finance
Debt settlement Colorado has companies of debt settlement which is one debt agency of the state that...
 
The Benefits of Financial Advice Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
You work hard for your money and you therefore need to ensure that you properly manage it so that yo...
 
The Benefits of Financial Advice Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
You work hard for your money and you therefore need to ensure that you properly manage it so that yo...
 
Pensions in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Pension is a money received after retirement or end of a work agreement. It is mostly associated wit...
 
Pensions in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Pension is a money received after retirement or end of a work agreement. It is mostly associated wit...
 
Pension in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Leeds has many financial advisors especially those dealing with pension. Pension is very important e...
 
Pension in Leeds
Published by Fredrick Gavin on August 24th 2012 | Finance
Leeds has many financial advisors especially those dealing with pension. Pension is very important e...