Small and medium-sized enterprises (SME) market study
Published: 3 February 2025
Response deadline: 17 October 2025
| Title | Small and medium-sized enterprises market study Invitation to comment |
|---|---|
| Format | pdf, 234.3 KB |
Overview
The FRC’s market study into SMEs aims to examine the challenges faced by SMEs in relation to audit and reporting, where practitioners have difficulties in auditing SMEs, and understanding the decision-making process for SMEs who procure audit services when otherwise exempt.
This market study is the first phase of the FRC’s broader campaign to support UK SMEs to access audit services and secure the capital they need for growth.
The closing date for responses to the Invitation to comment was 25 April 2025.
The closing date for responses to the questions set out in the emerging findings report was 17 October 2025.
| Name | SME Market Study information sheet |
|---|---|
| Publication date | 19 February 2025 |
| Type | Information sheet |
| Format | PDF, 1.9 MB. View HTML version |
Roundtables
The FRC held a series of online roundtables throughout the invitation to comment consultation period for stakeholders to share their views on the questions asked, and explore issues in more detail. Roundtables took place on Microsoft Teams to allow for engagement from across the UK.
The FRC was keen to hear from those organisations and individuals involved in this market, including SMEs and their advisers, auditors and their professional bodies, and providers of capital to SMEs.
Emerging findings
The FRC has published initial feedback on its market study in the audit market for SMEs. The report outlines the feedback received to the FRC’s Invitation to Comment, our ongoing survey of SMEs and extensive stakeholder engagement with SMEs, capital providers, audit firms, professional bodies and others. The report sets out challenges identified in the SME audit market and proposed remedies to address these issues.
The FRC invites responses to the questions set out in the emerging findings report by 17 October 2025 and will be engaging further with stakeholders across Summer and Autumn 2025.
| Name | SME Audit Market Study Emerging findings |
|---|---|
| Publication date | 17 July 2025 |
| Type | Report |
| Format | PDF, 1.4 MB. View HTML version |
| Name | SME Audit Market Study - Emerging findings at a glance |
| Publication date | 17 July 2025 |
| Type | Information sheet |
| Format | PDF, 510.5 KB. View HTML version |
Final report
The FRC has published its final report from its market study into the audit market for small and small and medium-sized enterprises (SMEs), as part of our broader campaign to support UK SMEs to access audit services and secure the capital they need for growth. The market study was launched in February 2025, with our emerging findings published in July 2025.
The market study has found that audit market for SMEs is, in our view, broadly functioning well. We have found a large and stable pool of audit firms supplying SME audits, and our research with SMEs found that most reported no issues finding an auditor, and described the audit fees they paid as representing good value for money.
While our report has found that this market is broadly functioning well, we have identified issues that, if resolved, can result in meaningful improvements for SMEs and those who provide audit services to them. However, addressing these issues is not solely for the FRC. Although the FRC can take steps to support the proportionate audit of SMEs through our regulatory role as a standard-setter, the Recognised Supervisory Bodies play an important role in overseeing SME audits, and some aspects of the market will naturally be shaped by competition and commercial dynamics.
| Name | SME Audit Market Study: Final Report |
|---|---|
| Publication date | 24 March 2026 |
| Type | Report |
| Format | PDF, 6.9 MB. View HTML version |