Europe
Audit
EU Green Paper on Auditing
The UK Government published its response to the European Commission's Green Paper Audit Policy: Lessons from the Crisis on the role of audit on 8 December 2010. The objective of this green paper is to initiate a debate on the role and the governance of auditors, as well as possible changes which might be forseen.
The Green Paper covers issues such as the concentration in the audit market and its implications on financial stability, the emergence of small and medium sized practitioners, the audit of SMEs and international standards on auditing.
UK Government response (PDF, 125 Kb)
European Commission Green Paper
Accounting
Micro Entities
The Commission published a proposal on 26 February 2009 to give Member States the option to give very small businesses (micro entities) more flexibility in the way they organise their accounts, by removing them from the scope of the 4th Company Law Directive.
The proposal would give Member States the option to simplify accounting requirements of micro entities (those with no more than 10 employees and less than €1m turnover). This proposal is part of the Commission's programme to reduce administrative burdens stemming from the EU law by 25% by 2012, and offers the possibility to reduce burdens significantly for micro entities at a time of severe economic pressure without imposing it on those that would find it counterproductive.
In March, the European Parliament approved the proposal with a clear majority. However, there is currently a blocking minority by some Member States who have concerns such as the proposal reducing harmonisation within the Union by introducing the option to exempt micro entities.
The UK Government strongly supports the micro proposal because we believe that it could save the smallest businesses between £100-400m per annum.
European Commission Proposal and further information
