FSA proposes to remove audit requirements

Small FSA authorised firms and ARs which only undertake mortgage and general insurance business are already exempt from the audit requirement by virtue of an amendment made to the Companies Act in September 2005, and the consultation paper proposes to extend this exemption to other small firms. The FSA estimates if the audit requirements are removed it would save 3,200 small firms £8.9m each year, the most benefit being to financial advisers, and would save ARs £4m each year. The average cost of a statutory audit for a small firm or an AR is between £2,150 and £3,370. The proposal ...