In the past, audits have been seen as the ‘cost’ companies had to pay for the privilege of limited liability.
However, we believe audits provide reassurance that the annual accounts are reliable, not only to shareholders; but a variety of stakeholders, such as lenders, customers and creditors.
It is therefore of utmost importance that your audit is completed to a high standard.
We ensure you have met the statutory audit requirements and we concurrently review all business systems to identify and discuss any potential issues. We assist management in implementing any agreed solutions with the aim to mitigate future problems.
The turnover threshold which currently exempts most companies and limited liability partnerships (LLPs) from a statutory audit is £6.5 million.
Certain companies, charities and specialised trades also require mandatory statutory audits, as required by legislation.
Since 1 October 2012, the definition of a small company which is eligible for exemption will normally be one that meets two or more of the following criteria for the current and previous year:
- Turnover not more than £6.5 million
- Balance sheet total not more than £3.26 million
- Not more than 50 employees
Not all companies with turnover under £6.5 million come within the audit exemption provisions. Public companies and those carrying on particular types of business, such as insurance broking and financial services are also subject to an audit.
Shareholders can require that an audit is carried out, for example if they are not involved in the day-to-day running of the business and require reassurance that their investment is being properly looked after.
Should you require an audit, we can ensure that your statutory audit requirements have been met, and stakeholders reap benefits.