Do you know why you need an audit or why you should have one?
An audit involves a detailed review of the company’s accounting systems, systems of control whilst requiring a detailed understanding of the company’s business.
A detailed review and expert knowledge can provide increased opportunities to provide proactive business advice on many matters.
The main reasons why you will be required by law to have a statutory audit are:
- 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 with opting out of the audit.
For accounting periods starting on or after 1 January 2016 audit thresholds are aligned with the new qualification as a small company, meaning companies (including LLP’s) are exempt from having a statutory audit if they meet 2 of the 3 following conditions:
- Turnover below £10.2 million
- Balance sheet total below £5.1 million
- Less than 50 employees
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.
Lall Ondhia delivers hassle-free audits. We can advise you if you need an audit or not and areas where you can save on accountancy fees.
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 to raise capital.
An audit reduces the possibility of fraud and can act as a deterrent to any potential fraudsters.
The Benefits of Hiring an Auditor for Your Business
Instead of performing an internal audit, hire a professional in London offering third-party auditing and accounting services for businesses of all sizes. Doing so allows you to enjoy the following benefits:
- Time Saver –By hiring an external auditor, you can focus more of your time on what you do best — growing your business and satisfying your customers.
- Improved Credibility – Bringing in an external auditor shows the business community that you value regulatory and financial compliance, which can attract prospective business partners and investors.
- Saved Money from Compliance Failure – When a company’s internal auditors fail to do an efficient job, it could result in compliance failure and cause the organisation to lose a lot of money. You can avoid this scenario by hiring a professional third-party auditor.