Are audits mandatory?
With audits remaining a statutory requirement for many limited companies we are registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be viewed at www.auditregister.org.uk under reference number C007209034.
Why are audits important?
The main reasons why you will be required by law to have a statutory audit are:
- If you meet two out of three of the following: – Your turnover exceeds £10.2 million, your gross assets exceed £5.1 million or the company is part of a group that exceeds those limits, or you have more than 50 employees.
- You are a PLC or a banking, insurance or finance company (or a subsidiary of one of these)
- You are required by your professional or trade organisation to have your accounts audited
- Your shareholders do not agree to opting out of the audit.
We are able to provide an independent and objective review of a company’s performance, satisfying any minority interests in the company and often more importantly, external financiers of the business.
We endeavour to carry out our duties under the Companies Act as efficiently and cost effectively as possible with our audits frequently highlighting valuable information which can positively impact on the future progress of the business.
How we can help you with your audit
We can advise you if you need an audit and if not, you can save on accountancy fees!
However, we aim to deliver hassle-free audits and there are good reasons for having an audit even if you are not required by law to have one…
- An audit involves a detailed review of the company’s accounting systems and systems of control and also requires a detailed understanding of the company’s business. Such a review and knowledge can provide increased opportunities to provide proactive business advice on many matters
- An unqualified audit report can improve the status of the accounts in the eyes of banks and commercial lenders, the Taxman and suppliers who may be seeking credit references, etc
- A history of accounts with clean audit reports can also be a factor if you ever wish to sell the company or perhaps take it to the market
- The possibility of fraud can be reduced, and an audit can act as a deterrent to any potential fraudster.