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Satisfying Third Parties

The Inland Revenue want to move closer to a situation where tax treatment mirrors that arising from a proper implementation of the Financial Standards and they will continue to rely on the audit to provide them with the assurance they need. Under self-assessment, the Revenue always has the power to demand further information, and non-audited companies are perhaps more likely to receive such attention.

Furthermore, some disclosure requirements for small private companies are now so undemanding that the Inland Revenue, as well as banks and other lenders, are almost certain to continue to require the assurance that an audit or an independent financial review can provide.

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