Private companies could soon be forced to cope with a sharp increase in audit costs, the Financial Reporting Council's chief executive has warned.
Paul Boyle told Accountancy Age that changes to
audit practices in the US are almost certain to affect international standards on auditing.
This is likely to result in the regulations becoming increasingly complex and the price of audit work being forced up, he explained.
"At the top end of the market it may be bearable, but not at the private end of the market," said Mr Boyle.
He added that the changes may lead to a renewed debate about the practicality of UK audit regulations, which currently apply a single set of standards to both listed and private companies.
Mr Boyle's warning comes just days after the Institute of Chartered Accountants in England and Wales called for UK and European legislators to act to reduce the administrative burden on small and medium enterprises.
© Adfero Ltd