To resign or not to resign?
Some auditors of entities no longer requiring a statutory audit under the new audit exemption regime may need to consider this and other thorny questions, as Lesley Meall explains.
The recent changes to reporting requirements and auditing exemptions in the UK have raised all sorts of new issues for those who have been auditing companies that no longer require a statutory audit. As well as considering the possibilities offered by voluntary audit, financial statement review and compilation, and discussing these with your clients, you will need to decide whether or not to resign as auditor.
There will be instances where the client takes the initiative and requests that you resign as auditor, and depending on the circumstances, you may need to consider whether the Companies Act 2006 requires you to inform the Financial Reporting Council (FRC) or ICAEW of your cessation.