skip to navigationskip to main content

Audits

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 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.

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.

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.

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 with the possibility of fraud reduced and an audit can act as a deterrent to any potential fraudster.

Next Step:

Please contact us if you need further advice, have any questions about our services, or would like a free consultation or a fixed quote.

What type of business do you have?

Freelance Freelance Start Up Start Up Small Business Small Business Medium Business Medium Business Large Business Large Business

Our newsletter gives a monthly round-up of the latest tax news updates