THOUSANDS of small businesses in East Lancashire could have a major burden lifted off them.

Moves to bring European countries in line over company law could mean many companies will not have to carry out annual audits in future.

The UK rule that firms with an annual turnover of more than £350,000 have to be audited is increasingly seen as outdated and too low compared with Europe and the US.

For many firms, audits represent a major financial outlay ranging from a few hundred pounds to several thousand.

But PM&M Blackburn-based accountant Diane Eatough, who is president of the North West Society of Chartered Accountants, said her members should not be too concerned over the move, which could lose them audit work.

"We are providing accountancy services, tax services and financial advice and at the end of the day the audit is probably not the single most important thing we do," she said.

Many chartered accountants believe the limit for audits could be more than trebled.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.