What is an audit?
The form that an audit takes depends greatly on the client. The overall aim of the statutory audit is for the auditor to form an independent opinion regarding the completeness and accuracy of the financial statements for a given period by examining the company’s records.
Who is required to have an audit?
Circumstances include businesses where the following apply:-
- Public Companies
- Business and Companies carrying on specific types of regulated business (eg certain insurance services and charities)
Since 1 October 2012 a Private Company or Limited Liability Partnership can normally claim exemption from an audit if it meets two or more of the following criteria for the current and previous year:-
- Turnover less than £6.5 million
- Balance Sheet total less than £3.26 million
- No more than 50 employees.
- An audit may also be required by the bank or other lender or the members of the company by virtue of Section 476 of the Companies Act.
Why have an audit?
Unless a mandatory requirement, an audit may be chosen as it provides additional reassurances following an independent review. It gives greater creditability when tendering for contracts, seeking finance or providing additional assurance to the members.
In addition to the audit report we will provide a constructive report on any weaknesses identified and provide recommendations to address these.
Can anyone carry out an audit?
No. We are a registered auditor with the Institute of Chartered Accountants in England and Wales (ICAEW) being our regulatory body, ensuring we meet the exacting standards required to achieve Auditor status.