Is there a gap in auditor and verifier practice in the case of SMEs compared to large companies?

Abstract

The objective of this research is to verify the existence of a gap between the practice of auditors and verifiers in the case of audit and verification of SME accounts and that of large companies. All existing auditing regulations have been initially designed to audit all possible problems that may arise in a company, which will undoubtedly occur in large companies with a higher level of turnover, larger volumes of assets and a larger number of employees, where economic and financial situations tend to be much more complex. Without a doubt, it has been proven that this regulation works perfectly with this profile of companies, as evidenced by the reports and audit activity carried out so far. However, this raises the following question: whether a regulation that is so well adapted to this profile of companies with these characteristics does not need to be adapted for smaller companies whose activity is much less complex in certain aspects. Well then, this is the starting point of this work, the idea that a standard that is so adapted to the problems of large companies needs to be developed specifically for SMEs, bearing in mind that there are some regulatory nuances that have been included in the general regulations, but which are insufficient, and in some cases unclear for the professional. To this end, a regulatory analysis of auditing practice will be carried out, complemented by a survey of auditors' opinions. The results of this study will be disseminated and made available to the various bodies and associations concerned. It is also an important contribution for companies, as any improvement in the auditing process to which they may be subjected will have a positive impact on different aspects of their management and image.