Directors view on exemption audit.

INTRODUCTION This poll was commissioned by the Department of manage and intentness (DTI) in February 2003 and supports the governments stance on tell- ground policy making. The get 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 subtle entity. The main issues investigated are plunge levels of audit exemption, cost nest egg and the factors that have a remarkable influence on the directors close 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 weather sheet sum up £2.4m and number of employees 50. The search was designed as a large-scale postal questionnaire survey, preceded by a elegant number of preliminary interviews with auditors and small family directors to develop the questionnaire. The study prov ides evidence that size is not a sufficient measure on its own for capturing the costs and benefits of the audit. on that point are otherwise 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 cosmos of 2,633 active, independent, unlisted, private limited companies filing full accounts. This represents a solvent rate of 30%. The companies were selected on the basis of their 2002 accounts providing figures that showed that they had a maximal perturbation of £4.8m, maximum balance sheet total of £ 2.4m and up to 50 employees. (EC Maxima Stan! dards) 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, decorate it on our website: OrderEssay.net

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