- UK AUDIT EXEMPTION LIMITS INCREASE TO £1,000,000 AND SET TO
£4,800,000 IN THE FUTURE
Things are changing very fast, thanks to the Internet, and the old power structures are crumbling away rapidly. Two developments in spring 2000 impact ACCA, the second tier UK accountancy professional body:
Dept of Trade & Industry announced that the Audit Exemption turnover limit is increased as of 31 July 2000 from £350,000 to £1,000,000. The Minister said it is to rise to £4,800,000 soon - some guess that would be before the next UK General Elections in about 18 months.
Financial Services Authority announced that Insurance Broker and other Financial Services work will be regulated direct by the FSA and so is being withdrawn from RSBs professional bodies including ACCA, The Law Society, ICAEW, etc.
The consequences for ACCA include:
1 - ACCA's Monitoring Inspectors will find a significant reduction in number of visits to audit firms regulated by ACCA in respect of audit and/or financial services work.
2 - ACCA's Legal Department and ACCA's notorious Disciplinary machinery will have less ACCA members to "discipline" - Austin Mitchell MP calls ACCA's methods "macho" to say the least! This would result in less income for ACCA in disciplinary fines, less disciplinary work for ACCA's lawyers, one of the largest law firm in the UK and reduced fear for ACCA member
3 - fewer ACCA audit firms will need expensive Hot Review and Cold Review of their audit files in order to retain their existing company clients.
That raises the following questions:
Q - How many ACCA registered firms will need an Audit license after 31 July 2000?
Q - How many ACCA audit firms have Ltd Co clients with turnover exceeding £1,000,000? soon to rise to £4,800,000?
Q - How will ACCA qualification look with fewer and fewer ACCA auditors?
Q - Will ACCA's curious proxy vote system continue to be as useful?
As if this was not enough, Office of Fair Trading www.oft.gov.uk
are inviting comments from the public whether UK professions hamper competition
in the UK. This consultation closes in about three weeks - send your comments
now! OFT's brief is to present a report to two of the
most powerful Ministries in the UK, the DTI and the Treasury.