should you get your accounts audited?
audit
Companies are required to have an audit if
»Your turnover exceeds £6.5million or your gross assets exceed £3.26 million or the company is part of a group that exceeds those limits;
»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 to opting out of the audit.
There are good reasons for having an audit even if you are not required by law to 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;
» 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;
» 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;
»The possibility of fraud can be reduced and an audit can act as a deterrent to any potential fraudster.
We undertake audits for small to medium sized companies and non-profit making organisations like charities and clubs in association with registered auditors who would do the final sign off of our work.
Our directors are also experienced in IFRS Tax audits which currently apply to large companies i.e listed groups in the UK and those that have voluntarily adopted IFRS. However, IFRS is currently being considered for small and medium sized companies so watch this space for further information.
Preparation work for large company audits
Another key service that we provide is supporting medium and large companies in preparation for their statutory audits especially tax audits. We are currently retained by a large US Fortune 500 company to provide this support as they find our services add a lot of value to their year end process.
