Abstract - “The audit requirements cessation - Advantages and disadvantages with audit in small business after the cessation.”
Date: May 27th 2016
Level: Bachelor thesis in business Administration, 15 ECTS
Institution: School of Business, Society and Engineering, Mälardalen University
Anna Linder 16th February 1987
Xuan Duyen Nguyen 8th August 1987
Linnéa Thunes 26th December 1994
Title: The audit requirements cessation – Advantages and disadvantages with audit in small business after the cessation.
Tutor: Staffan Boström
Key words: Audit requirement, abolition, audit, advantages, disadvantages and voluntary audit
What advantages and disadvantages are there with audit in small companies?
Which factors affect small companies’ choices of having an auditor or not?
Purpose: The purpose with this study is to find out what advantages and disadvantages there is with audit in small companies since the audit requirement repeal. The purpose is also finding out how small companies think when they do their choice of having or not having an auditor.
Method: We stated this study by looking at already existing literature. Our study is a qualitative study, with an inductive view. So we could see what already was written on audit and the audit requirement. A while after that we started does seek after scientific articles, using the database discovery. In this study we are using qualitative method with an inductive view. The collection of empiricism was made using interviews with eight people that could relate to our subject.
Which advantages and disadvantages there is with audit depends on who you´re asking. However, both stakeholders and the company itself get a receipt that the audit is correct. If the company wants to expand, the auditor works as an advisor to give tips and advice. Also if you are insecure in accounting, the auditor can be like an extra pair of eyes.
Which factors that effects the choice of having an auditor or not, may vary. Those factors that have emerged in this study are the cost of audit and the lack of knowledge. For small companies the cost can be painful. When it comes to the knowledge, the audit can be like an extra safety.
2016. , 37 p.