Audit & Assurance in UK
Added on 2020-02-03
8 Pages1853 Words44 Views
Audit & Assurance
Table of ContentsIntroduction......................................................................................................................................3Backgrounds....................................................................................................................................3Significant Influences......................................................................................................................3Audit Reform - Impact.....................................................................................................................4Auditing...........................................................................................................................................4Internal audit and Brexit..................................................................................................................5How Brexit Affect Auditors............................................................................................................5Issues................................................................................................................................................6Third Audit Professionals................................................................................................................6References:......................................................................................................................................8
INTRODUCTIONUnited Kingdom being one of the crucial members of European Union will be adverselyaffected by Brexit as it will have vital impact on trade volumes, investment opportunitiesreduced with time therefore leading to fall in value of Great Britain Pound(GBP) at least 10%below as on before the news and consequently decline speculation and exchange markets.However quantification of overall impact is difficult to analyse as it would impact the economythrough various channels. UK would now be liberal and free to enter into agreements beneficialfor the domestic territory and preferences rather than considering EU as a whole. EU may haveboth positive as well as negative impacts of Brexit as it would lead to political integration on thecontrary causing loss of substantial part of tangible and intangible assets. Anticipation of impacton exact terms is still difficult however it can be estimated on relative terms keeping in mindvarious other factors of macroeconomics.BACKGROUNDSEconomy across the globe is affected by Brexit but major economies playing the lead roleare EU and Britain. Quantitative impact can be easily derived by exchange variation. Therewould be significant impact on spending patterns of household as the imported goods willbecome more expensive thereby causing rise in prices of food, clothing and household articles.The UK would have to enter into revised negotiations such as 4 Global Counsel 2015 Executivetherefore reducing the bargaining power of UK. EU will have limitations based on thepreferences of US and Japan and some rising nations therefore standing on the lower platformthan competitors. With the help of more dynamic monetary and exchange cures EU canefficiently utilize the resources without UK. The exact impact of Brexit on overallmacroeconomics of nation is nearly impossible as it is an outcome of several factors andconditions depending upon past performance and future outcomes. However it can be said thatUK will be negatively impacted and short run leaving minor impact on EU .Interpretation byvarious economist vary on the particular subject thereby causing ambiguity in clear outcome.SIGNIFICANT INFLUENCESThere are certain channels which are not captured by macro-economic models, instabilityand liquidity are part of them Submission vulnerability is a major concern for many of the UKorganisations. However there are certain terms and conditions depending upon which thenegotiations will be entered into and considered while exiting the EU.
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