Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
The Financial Reporting Council has launched a year-long campaign to help small and medium-sized enterprises (SMEs) access audit services and reduce reporting burdens where possible.
The initiative aims to improve SMEs’ access to capital and to support their growth ambitions.
SMEs represent more than 99% of all private sector businesses with a shared turnover of around £2.75tn (52% of total UK business turnover) and employing around 16.6 million workers.
Access to audit is often important in supporting SMEs to secure the capital they need to scale, creating wealth and jobs. However, the FRC is aware of some challenges faced by SMEs to secure audit services at a proportionate cost, which may affect their ability to grow, and in how auditing standards are interpreted and applied.
As set out in the FRC’s draft three-year strategy published in December, the campaign will examine how SMEs undertake financial reporting, use and audit to access capital, and how the FRC can help audit firms apply audit standards proportionately to these smaller companies.
The campaign will feature open engagement with FRC’s stakeholders including SMEs and their representatives, their capital providers, auditors who provide services to SMEs and their professional bodies.
Richard Moriarty, chief executive, 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.”
He added: “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.”
