Audit from Audit Exempted Small and Medium-sized Entities (SMEs) in Sweden
Small and medium-sized enterprises (SMEs) are seen as backbone for economic growth because they are regarded as catalyst for entrepreneurial skills, innovation and employment. Since in Sweden approximately 99.89% of enterprises are SMEs, they take an important role in country’s economic development....
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Umeå universitet, Handelshögskolan vid Umeå universitet
2011
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ndltd-UPSALLA1-oai-DiVA.org-umu-455022013-01-08T13:32:01ZAudit from Audit Exempted Small and Medium-sized Entities (SMEs) in SwedenengLakhe Shrestha, Biswas KajiWai, Honey HtunUmeå universitet, Handelshögskolan vid Umeå universitetUmeå universitet, Handelshögskolan vid Umeå universitet2011Audit demandsAudits for small and medium-sized entities (SMEs)Audit exempted SMEsBand loansSwedish legislation of statutory audit exemptionVoluntary auditsBusiness studiesFöretagsekonomiSmall and medium-sized enterprises (SMEs) are seen as backbone for economic growth because they are regarded as catalyst for entrepreneurial skills, innovation and employment. Since in Sweden approximately 99.89% of enterprises are SMEs, they take an important role in country’s economic development. Most of the countries especially EU nations have abolished the statutory audit provision for (SMEs). The new Swedish legislation of statutory audit exemption came into effect on 1st November, 2010. In accordance with this new legislation, (SMEs) within two out of three following criteria; turnovers 3 million Swedish Kronor, balance sheet total 1.5 million Swedish Kronor and 3 total numbers of employees are exempted from statutory audit requirement. Despite the fact that audit exempted SMEs are voluntarily conducting financial statements audited. As per above matters, this study finds the expected benefits of audit exempted SMEs in Sweden when they go for voluntary audited financial statements. In order to attain our research findings, this study chooses to conduct qualitative research method by semi- structured interviews with respondents from SMEs. Besides that, bankers’ opinion on audited financial statements and voluntary audits are discussed in order to complement our main research finding. When it comes to collect empirical data, we use convenient data sampling from Sweden, particularly in Umeå due to the cost and time limitations. According to our empirical results, the expected benefits for audit exempted SMEs in Sweden voluntarily conducting their financial statements audit are as follow: Security with the audited financial information Right amount of tax paid to tax authorities Easy to get bank loan Better relation with creditors, investors and suppliers In accordance with empirical results of bankers, we can confirm that bank will grant loan easily to clients who have their financial accounts audited. As a contribution of new knowledge we find that in Sweden, banks used credit scoring lending technique when it comes to grant bank loan. The interest rate determination is also relied on credit rating of companies. Companies who have good credit rating will be granted loan with lower interest rate. As for small companies who would like to get external financing from banks, the requirement criteria could describe as; audited financial statements, collaterals, business plan, owners’ grantee for loan repayment and good credit history. Student thesisinfo:eu-repo/semantics/bachelorThesistexthttp://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-45502application/pdfinfo:eu-repo/semantics/openAccess |
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English |
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Others
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Audit demands Audits for small and medium-sized entities (SMEs) Audit exempted SMEs Band loans Swedish legislation of statutory audit exemption Voluntary audits Business studies Företagsekonomi |
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Audit demands Audits for small and medium-sized entities (SMEs) Audit exempted SMEs Band loans Swedish legislation of statutory audit exemption Voluntary audits Business studies Företagsekonomi Lakhe Shrestha, Biswas Kaji Wai, Honey Htun Audit from Audit Exempted Small and Medium-sized Entities (SMEs) in Sweden |
description |
Small and medium-sized enterprises (SMEs) are seen as backbone for economic growth because they are regarded as catalyst for entrepreneurial skills, innovation and employment. Since in Sweden approximately 99.89% of enterprises are SMEs, they take an important role in country’s economic development. Most of the countries especially EU nations have abolished the statutory audit provision for (SMEs). The new Swedish legislation of statutory audit exemption came into effect on 1st November, 2010. In accordance with this new legislation, (SMEs) within two out of three following criteria; turnovers 3 million Swedish Kronor, balance sheet total 1.5 million Swedish Kronor and 3 total numbers of employees are exempted from statutory audit requirement. Despite the fact that audit exempted SMEs are voluntarily conducting financial statements audited. As per above matters, this study finds the expected benefits of audit exempted SMEs in Sweden when they go for voluntary audited financial statements. In order to attain our research findings, this study chooses to conduct qualitative research method by semi- structured interviews with respondents from SMEs. Besides that, bankers’ opinion on audited financial statements and voluntary audits are discussed in order to complement our main research finding. When it comes to collect empirical data, we use convenient data sampling from Sweden, particularly in Umeå due to the cost and time limitations. According to our empirical results, the expected benefits for audit exempted SMEs in Sweden voluntarily conducting their financial statements audit are as follow: Security with the audited financial information Right amount of tax paid to tax authorities Easy to get bank loan Better relation with creditors, investors and suppliers In accordance with empirical results of bankers, we can confirm that bank will grant loan easily to clients who have their financial accounts audited. As a contribution of new knowledge we find that in Sweden, banks used credit scoring lending technique when it comes to grant bank loan. The interest rate determination is also relied on credit rating of companies. Companies who have good credit rating will be granted loan with lower interest rate. As for small companies who would like to get external financing from banks, the requirement criteria could describe as; audited financial statements, collaterals, business plan, owners’ grantee for loan repayment and good credit history. |
author |
Lakhe Shrestha, Biswas Kaji Wai, Honey Htun |
author_facet |
Lakhe Shrestha, Biswas Kaji Wai, Honey Htun |
author_sort |
Lakhe Shrestha, Biswas Kaji |
title |
Audit from Audit Exempted Small and Medium-sized Entities (SMEs) in Sweden |
title_short |
Audit from Audit Exempted Small and Medium-sized Entities (SMEs) in Sweden |
title_full |
Audit from Audit Exempted Small and Medium-sized Entities (SMEs) in Sweden |
title_fullStr |
Audit from Audit Exempted Small and Medium-sized Entities (SMEs) in Sweden |
title_full_unstemmed |
Audit from Audit Exempted Small and Medium-sized Entities (SMEs) in Sweden |
title_sort |
audit from audit exempted small and medium-sized entities (smes) in sweden |
publisher |
Umeå universitet, Handelshögskolan vid Umeå universitet |
publishDate |
2011 |
url |
http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-45502 |
work_keys_str_mv |
AT lakheshresthabiswaskaji auditfromauditexemptedsmallandmediumsizedentitiessmesinsweden AT waihoneyhtun auditfromauditexemptedsmallandmediumsizedentitiessmesinsweden |
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