We provide a range of audit and assurance services to our clients, including voluntary and statutory audit, assurance reports and client money audits.
It is a requirement for private limited companies to have their annual accounts audited unless they meet exemption criteria. Smaller companies are often exempt from audit, if they meet two out of the three following criteria,
- an annual turnover of no more than £10.2 million
- total assets of no more than £5.1 million
- 50 or fewer employees on average
Once a company size is established, these criteria must be met in both the current and previous financial year, in order to qualify for exemption. These limits apply for periods starting on or after 1st January 2016.
It is also worth noting that even if a small company meets the above criteria, they may still be required to undertake an audit. This may be if they are part of a group or a charity and are required to follow the charity audit thresholds, or is a requirement of the company’s articles of association.
Some companies who fall outside of compulsory audit criteria may decide to undertake a voluntary audit. There are a number of reasons why a company may decide to do this, including receiving the benefits of the audit process as outlined below. Not only will the company gain a full review of their systems and processes with suggested improvements, but as the company grows into the compulsory threshold, their accounts processes will be in great shape and the company will be used to the audit process. Receiving and going through a quality audit process will increase the trust of your stakeholders: customers, suppliers, shareholders, and potential investors.
If you require an audit, our experienced team will guide you through the audit process. We will undertake a review of your systems to enable us to fully understand how you operate. We not only assess how your business has performed but also identify any potential risks or weaknesses that could be impacting your growth and success. From this information we outline how these potential weaknesses can be improved upon. We are proud to be regulated by the ACCA and follow their high technical and ethical standards.
If you would like to discuss our audit service, or have questions regarding the compulsory threshold, please do not hesitate to get in touch.
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