Currently if any one, or more, of the following criteria’s are satisfied in any one year, there is a statutory requirement to have an audit:-
- Turnover exceeds £6.5 million or gross assets exceed £3.26 million or the company is part of a group that exceeds those limits.
- The company is a PLC or a banking, insurance or finance company (or a subsidiary of one of these).
- The company is required by a professional or trade organisation to have the accounts audited.
- The company’s shareholders specifically request an audit, even if the company per se is audit exempt.
Having an audit has many advantages, even if you are not required by law to have one. These include:-
- An audit includes a review of the company’s accounting systems and systems of internal control and also a detailed understanding of the company’s business activities and risk assessments. This review and knowledge can provide business advice on many matters.
- An unqualified audit report is favorably viewed upon in the eyes of banks and commercial lenders, HM Revenue & Customs and suppliers.
- The possibility of fraud can be reduced and an audit can act as a deterrent to any potential fraudster.
Please contact us to see how we can offer our audit assistance