There has already been some progress in this area. You may remember that in January 2004 the definition criteria for small and medium-sized companies and the audit exemption limit were raised significantly, meaning that many more companies could benefit from the exemptions available.
Proposals in the 2005 Bill include:
|
Current filing deadline
|
Proposed filing deadline
|
|
|
months from the end of the accounting period
|
months from the end of the accounting period
|
|
| Private limited company (Ltd) |
10
|
9
|
| Public limited company (Plc) |
7
|
6
|
| Comment The potential impact of this change has been somewhat lessened, as earlier proposals intended to decrease the filing deadline for private limited companies to 7 months. It is worth remembering that there are automatic penalties if your company’s accounts are filed late. These range from £100 to £1,000 for private companies and from £500 to £5,000 for public companies, dependant upon how late the accounts are filed. |
Amongst the proposals in this area is the introduction of a new criminal offence for an auditor to knowingly or recklessly include anything that is materially misleading, false or deceptive in an audit report.
Auditors will also be able to agree, subject to annual shareholder approval, contractual liability limits in respect of any negligence, default, breach of duty or trust occurring in the course of an audit.
Small and medium-sized companies will continue to be able to file abbreviated accounts.
| Comment Earlier proposals intended to abolish the option for small and medium-sized companies to file abbreviated accounts at Companies House. Those that currently choose to file abbreviated accounts will no doubt welcome this unexpected option. |