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...
- 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.
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 audit and accountancy fees!
What is an Audit?
- 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, HMRC 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.
Tremaines are not registered auditors and we do not provide statutory audit services. However, some of our clients are required to have an audit, and in these cases we work closely with their auditors to ensure the audit runs as smoothly as possible.
We are happy to recommend audit firms that we work with.
Next Step:
Please contact us if you need further advice, have any questions about our services, would like a free consultation or a competitive fee quote.
