Government to remove SME requirement to hire external auditors
Minister for Jobs, Enterprise and Innovation Richard Bruton is to increase the number of businesses exempt from the requirement to hire external auditors, it was announced today.
The Government are hoping that the plans to cut red tape for businesses will save €500m per year.
Up to 2,500 small and medium businesses are expected to benefit from the measures.
The move to increase the number of businesses exempt from the requirement to hire external auditors will be the maximum level permitted under EU law.
Minister Richard Bruton also said the overall reduction of 25% in the red tape can be achieved by the end of next year.
The increase in the audit exemption threshold means companies with a turnover of less than €8.8m, or less than 50 employees, will not have to hire independent auditors to examine their accounts.
Mr Bruton says his Department is already on course to achieve the 25% reduction in red tape by the end of 2011.
"Government does not create jobs, people and businesses do, and the role of Government is to create the environment in which more businesses can establish, expand and create the jobs we so badly need," he said.
"A crucial aspect of this is reducing costs faced by businesses, and I am determined that Government will act urgently to address the costs that are directly within its control.
“The total cost of Government-imposed regulation on Irish business has been estimated at €2bn per year.
"Today I am pleased to announce two important measures to reduce costs imposed by Government on business:
"Firstly, the thresholds for exempting businesses from the requirement to engage external auditors will be increased by over 20% to the maximum allowable under EU law: €8.8m in turnover and €4.4m in balance sheet.
"This will mean that a minimum of 1,000 extra businesses will not have to spend the money and time necessary to engage auditors, saving these SMEs a total of up to €5m per year.
"Secondly, Government has decided to take the next steps to ensure that we can achieve the targeted reduction of €500m by the end of next year. So far, only my Department and the CSO have even measured the cost of their red tape, and my Department is on course to achieve the 25% reduction by the end of 2011.
"The Government decision is that my Department will lead the process, and all other bodies involved in the process will devote the resources to measure the cost of their red tape by May 2012, so as to allow them to achieve the reductions by the end of that year."
