Services | Audit

An audit is an independent professional examination on the reliability of information provided in companies’ accounts. It is required by statute. It is entirely separate from the task of preparing the statutory accounts – which is the responsibility of the directors. Companies with an annual turnover of up to £5.6M and gross assets of not more than £2.8M can claim exemption from an audit. Different criteria apply to charitable companies – where an audit is at present required where turnover is £250,000 (this limit is soon to be increased to £500,000).

If a company’s affairs are relatively straightforward and managed by its owners, they may perceive an audit to be of little benefit – especially if the accounts are compiled by qualified accountants. However, where the shareholders are different from the directors of the company an audit gives re-assurance to company members who are not part of the company’s management team.

Audits should be a constructive exercise to provide assurance that companies’ accounts show a true and fair view. In addition:

Audit

• An audit can help deter and detect material fraud and error
• An audit can provide companies with additional confidence in its financial results.
• It can help with credit reference agencies and form the basis of bank lending.