The Association of International Accountants (AIA) welcomes the Financial Reporting Council’s (FRC) new campaign to help small and medium-sized enterprises (SMEs) access audit services and reduce reporting burdens.
David Potts, AIA Director of Policy & Regulations said, “AIA supports the FRC’s campaign to help UK SMEs access audit services and reduce reporting burdens. This initiative will foster growth and help SMEs scale effectively. AIA members can provide expertise to navigate new standards, secure funding, and drive innovation in the UK economy.”
SMEs make up over 99% of UK private businesses and drive economic growth, innovation, and jobs. However, many struggle to obtain proportionate audit services, affecting their ability to expand. The FRC’s campaign will explore SME financial reporting, audit access, and how standards can be applied fairly.
Richard Moriarty, Chief Executive of the Financial Reporting Council, said, “SMEs are an important bedrock for the UK economy as drivers of innovation and job creation with their ability to access capital often dependent on having audited accounts. I’m keen that the FRC does what it can to support their growth and their ability to scale up.
This campaign across 2025 is focused on analysing how the audit market is working for SMEs, including the reporting and audit requirements they face, and ensuring they are audited proportionately including considering any steps the FRC can take to support this vital part of the UK economy. We look forward to engaging and listening from SMEs and those who represent them, their capital providers, and others with an interest in this important work.”
The campaign launches a market study on 3 February 2025 to assess SME audit challenges. The FRC will also consult on a Practice Note to guide auditors on proportionate standards and provide support materials for SMEs to better understand audit requirements.
