14 Feb 2025
Wbg, one of Scotland’s leading independent specialist accounting, tax, and audit firms, says that the biggest problem facing SMEs requiring a statutory audit is finding an auditor with the correct skills, level of resource, and available timings to satisfy its requirements at a viable fee level.
The firm is responding to the launch of a market study from the Financial Reporting Council (FRC) examining how effectively the audit market serves SMEs and exploring opportunities to reduce their reporting burden where possible.
While audited accounts often play a crucial role in helping SMEs secure the capital they need to scale, creating wealth and jobs, the FRC is aware of concerns about the availability and cost of audit services for these businesses.
Sandy Hogg, director in Wbg’s audit team, said: “A statutory audit can pose many problems to SMEs but the biggest in my opinion is finding the auditor with the correct skills, level of resource, and available timings to satisfy the client requirements at a viable fee level.
“Smaller audit firms can combat this with focus on recruitment and retention of talent. This will allow improved audit quality, improved delivery speed, and better client service.”
Hogg emphasizes that attracting and retaining top talent is a core priority at Wbg, which has not only doubled its annual graduate intake for the auditing department but has also seen significant success in broader recruitment and retention efforts firmwide across all levels.
“A key issue is that small companies have to prepare for similar audit interrogation for which larger companies are required to prepare and that can be a real challenge given the market dynamics of supply and demand of audit expertise available within a regulatory framework requiring ever more scrutiny. This, in turn, requires more detailed work from auditors, entailing more costs which auditors need to recover.”
The FRC is inviting all interested parties to submit comments and evidence on the SME market study by 25 April 2025.
