Under the new legislation, the accountancy bodies will have to submit their by-laws – including their ethical rules and disciplinary and investigation procedures – to the IAASA for approval. This will lead to a significant strengthening of such rules and procedures, including rules governing auditor independence, while making directors much more aware of their obligations under the law. Many SME directors will see this as a burden and I agree with that view. There are many forms and regulations which small companies must complete. I met an accountant recently who said he would not take on any more limited companies because of the number of regulations that must be complied with and the consequent responsibilities placed on him. He recommended that such companies should change their status and revert to being single trader companies.