Small firms, some of which may have a small business bank loan, may be exempted from the Financial Service Authority's (FSA) audit requirements.
The FSA has announced today that it received a "positive response" to a consultation it carried out regarding the possible removal of audit requirements from small firms and that the Department of Trade and Industry is in agreement with the FSA over the measurers.
It is thought by the FSA that the move would save small firms, some of which could have business loans, around £12.9 million each year.
The FSA also states that the changes will also predominantly affect financial advisors .
Commenting on today's announcement, Stephen Bland, director of small firms at the FSA, said: "The FSA is committed to providing a level playing field for all regulated small firms which should promote competition and benefit consumers.
"We are challenging regulations whose costs outweigh the benefits they bring and our work with the DTI to extend the audit exemption will bring firms that are limited companies in line with partnerships and sole traders ."
The FSA is an independent non-government body that regulates the UK financial services industry, which includes mortgage lenders and banks .




