Experian®, the global business solutions company, has issued an assurance to banks, leasing companies and businesses that trade on credit that the raising of the audit requirement threshold to Ј5m turnover will not affect their ability to take proper precautions to assess the creditworthiness of their customers before agreeing loans, leasing arrangements or trade credit.
The new audit threshold, which came into force in January 2004, has resulted in a further 69,000 companies being exempted from the requirement to have their accounts audited.
Phil Cotter, managing director of Experian’s Business Information division, said: “We welcome moves to reduce the red tape burden but UK businesses need to be reassured that the raising of the audit threshold will not limit the availability of credit facilities to small companies or reduce the effectiveness of companies’ credit management activities.
