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SME Campaign Overview
SME Campaign Overview
In January 2025, the FRC launched a campaign to help small and medium-sized enterprises (SMEs) access audit services and to assess, and where possible reduce, the reporting burdens these businesses experience.
The FRC recognises that SMEs are the backbone of the UK economy, representing more than 99% of all private sector businesses with a shared turnover of around £2.75 trillion (52% of total UK business turnover) and employing around 16.6 million workers. For these businesses, audit plays a vital role, enabling them to access capital and achieve their growth ambitions.
The FRC is committed to working with businesses, auditor practitioners, and capital providers to ensure that SMEs can access quality audit at a proportionate cost for their business.
SME Campaign
Market study on SMEs
This market study will focus on the audit and reporting challenges faced by SMEs, providing insights into the decision-making process for SMEs who procure audit services when otherwise exempt and identifying where practitioners have possible challenges in auditing SMEs.
Guidance to support proportionate audit of SMEs
Guidance for auditors of SMEs in the form of a practice note. This practice note will support auditors on how to apply International Standards on Audit (ISAs) in a proportionate and appropriately scaled way.
Supporting materials
Published supporting materials to build SMEs understanding of audit and ensure they can confidently and effectively engage with their auditor throughout the annual process.
Throughout 2025, these activities, alongside extensive stakeholder engagement, will contribute to our understanding of the audit market for SMEs. This will enable the FRC to share insights on how effectively the market is functioning, the barriers and challenges for these entities, and feed into the FRC's work to support the proportionate audit of SMEs and reduce reporting burdens where possible.
To engage with the FRC on this important topic, contact [email protected]