Do you know why you need an audit or why you ought to have one?

Companies that qualify as small companies under Companies Act 2006 are usually exempt from audit, unless they are members of a group or are charities and required to follow the charity audit thresholds (gross income of £1,000,000 or less for accounting periods ending on or after 31 March 2015 (£500,000 or less for prior accounting periods), unless both their gross assets exceed £3.26m and their gross income exceeds £250,000).

A company is small if for both this year and last year it was not ineligible, and it met two out of three of the following criteria (for periods ending on or after 1st January 2016):

  • Your turnover is less than £10.2million
  • Your total assests are less than £5.1million
  • You have fewer than 50 employees

We can advise you if you will require an audit.

Through our associated firm Lees, Chartered Certified Accountants, we aim to deliver trouble 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.

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