An audit is an independent review, which leads to a senior statutory auditor expressing an opinion on the financial statements. This can add a layer of credibility to your accounts, and third parties may place more reliance upon a set of audited financial statements.
Some organisations must have an audit; this may be as they are a plc, or perhaps they are required to be audited by a professional or trade organisation. For other companies, they must be audited as they breach two out of the three following criteria:
- Turnover in excess of £10.2 million;
- Balance sheet total above £5.1 million;
- 50 employees or more.
Some of the main advantages to having an audit are:
- It can assure business owners that the financial statements are accurate and there aren’t any material errors – this is of particular benefit if the owner is not involved in the day to day operations of the business;
- An audit can in itself be a good way to deter or reduce fraud, as well as reviewing internal controls to prevent fraud in the first place;
- A history of clean audit reports can also be beneficial to you if you were to decide to sell your business, or take it to the market.
As set out above, an audit is mandatory for many companies, however some of our Clients voluntarily opt to have an audit of their financial statements, due to the additional level of assurance given and also the additional benefits granted by having the audit take place.
We have experience auditing a wide range of companies including professional football clubs, car dealerships and charities. If you think we can assist your business please do not hesitate to contact us.