Our website uses cookies to enhance the visitor experience (what's a cookieCookies are small text files that are stored on your computer when you visit a website. They are mainly used as a way of improving the website functionalities or to provide more advanced statistical data.). Are you happy for us to use cookies during your visits?
Please note: continuing without making a choice equates to giving us your consent, which you can withdraw at any time via our cookies policy page.

Client Area Client Area

Magnify

ICAEW

Accounting, Taxation and Business Advisers

Call us today: 0118 405 6000 (Local Rate)

Request a Callback

Book a Free Consultation

Get a Fixed Quote

Find out how to Make more, Keep more and Work less

Want to pay less tax?

Newsletter Sign up

What size is your
business?

We know you love your business regardless of it's size, so let us offer you sound financial advice

Member of the ICAEW Business Advice Service

  • Start-up
  • Small Business
  • Medium Business
  • Large Business

Audits

Do you know why you need an audit
or why you should have one?

The main reasons why you will be required by law to have a statutory audit are...

  1. You are a PLC or a banking, insurance or finance company (or a subsidiary of one of these);
  2. You are required by your professional or trade organisation to have your accounts audited;
  3. Your shareholders do not agree to 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

For accounting periods starting before 1 January 2016 and ending on or after 1 October 2012 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 £6.5million
  • Balance sheet total below £3.26 million
  • Less than 50 employees

Most subsidiary companies are also exempt from audit where their parent company guarantees their liabilities.

For accounting periods ending on or before 30 September 2012 an audit is required where 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.

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...

  • 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.

Next Step:

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

 

  • Share on Facebook
  • Share on LinkedIn
  • Share on Twitter
  • Email this page to a friend