BOOSTING SME AUDIT EFFECTIVENESS IN THE UK

We offer a news analysis about the UK Financial Reporting Council’s new push to make SME audits more proportionate and effective? The FRC has issued new guidance to help auditors apply standards and released a study showing that the SME audit market is largely healthy and competitive. Alongside this, it has unveiled new measures including an auditor engagement programme, a technology sandbox to support AI adoption in smaller audit firms, and a working group to strengthen supervisory consistency. The FRC will also continue working with other regulators to ensure they too can support this change. We would explore why proportionality in SME auditing has become a growing priority, how technology could reshape audit quality and efficiency, and what these developments mean for smaller firms navigating rising regulatory expectations. Will AI narrow the capability gap between large and small auditors? What challenges remain for SME assurance? We would talk to the FRC to get more details, besides auditors and accountants.