Audit exemptions and change of accounting framework

This consultation covers 2 separate proposals:

Seeks views on changing audit exemptions to reduce the number of UK small and medium-sized enterprises (SMEs) and subsidiaries required to undertake an audit. We intend to make UK audit requirements more flexible to companies in response to a market inequality relating to EU requirements.

Seeks views on changing the law to allow companies more flexibility to change their accounting framework from International Financial Reporting Standards (IFRS) to UK Generally Accepted Accounting Practice (GAAP). We aim to allow companies to select the accounting framework most appropriate for them, whilst continuing to insist on reporting that allows shareholders to hold directors to account.

Each proposal has its own impact assessments.