Yes, you read that right! As a reaction to UK Government plans to raise the audit exemption threshold to allow UK ‘medium-size’ companies claim audit exemption, it’s possible that the Irish Government may raise the Irish audit exemption threshold to €50m (the current RoI ‘medium-size’ company threshold).
The UK Government is currently consulting on raising the UK ‘medium size’ turnover threshold to £54m. There are other criteria to be fulfilled to qualify as a ‘medium’ company, but for the purpose of this blog, we are focusing on the headline turnover number.
Please note that this is pure speculation on our part, but stranger things have happened in the past. Would the Irish Government like to see ‘medium’ companies incorporated in the RoI start migrating to Belfast to claim the new audit exemption threshold there? Most likely not.
The UK consultation is called Modernising Corporate Reporting and was launched on 7 September 2026. It runs until 30 November 2026.
It is part of a wider overhaul of corporate reporting rules designed to cut red tape for businesses. According to a recent Financial Times report, 40,000 UK businesses would be entitled to avail of the new exemption threshold, if introduced.
See our full range of updated letter of engagement templates, now including a paragraph dealing with the use of artificial intelligence, visit our online store here.
For those of you still in the process of ISQM 1 implementation, please see our ISQM TOOLKIT or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard, please call or e-mail John McCarthy FCA or e-mail him at john@jmcc.ie.
We typically tailor ISQM training and brainstorming sessions to suit each firm’s unique requirements.
Publications:
- The ISQM TOOLKIT 2022 is available to purchase here.
- To ensure your letters of engagement and similar templates are up to date visit our site here where immediate downloads are available in Word format. A bulk discount is available for orders of five or more items if bought together.
