Audit
An audit is a systematic and independent examination of books, accounts, statutory records, documents and vouchers of an organisation to ascertain how far the financial statements as well as non-financial disclosures present a true and fair view of the company. It also attempts to ensure that the books of accounts are properly maintained by the company, as required by law.
Auditing is a key part of the accountancy process, whether voluntary or requested. It doesn’t need to be a source of stress for you or your company, as we have the resources and the knowledge to carry out these audits for you efficiently, thoroughly and to ensure ongoing compliance.We will use our experience to invest time in understanding your business and will endeavour to provide you with a critical review of your business and not just comply with statutory requirements.
Our expert methodologies will assess and understand your business, systems and controls giving you recommendations on how to improve the way your business performs and we will perform our audit by subjecting your company to an in-depth analytical review. This will identify any areas where an alternative policy or procedure may be more appropriate for you. This will also provide you with an insight into how external readers of your accounts, including bankers and the tax man will interpret them.
We use modern risk-based analytical procedures to reduce detailed testing wherever possible. Computerised techniques play a key role and we have a full range of sophisticated software programmes. We will only visit your premises to perform essential tests which will be carried out as efficiently as possible with the minimum of disruption to you. We are experts in data analysis and accounting procedures, so we will find the best solution to your individual circumstances.
Your company may qualify for an audit exemption if it has at least 2 of the following:
- An annual turnover of no more than £10.2 million
- Assets worth no more than £5.1 million
- 50 or fewer employees
Statutory audits
If you have had a statutory audit requested, it is not an indication that you have done anything wrong. However, the purpose behind a statutory audit is to ensure that your financial statements are correct, and this involves a detailed analysis of bookkeeping, balances and transaction history.
Voluntary audits
Even without specific obligation required by the law, many entities have the necessity, or think opportune, to demand a qualified and independent professional judgment on their own financial reporting. You may feel that you aren’t getting the best out of your financial management, or you may want to obtain a validity check on your own records. Either way, a voluntary audit will thoroughly assess your finances, and can yield important information that can help you make cost-saving efficiencies.
Charity audits and independent examinations
If you are a charity, the type of audit or independent examination you will require depends entirely on gross income. If you have total assets of over £3.26 million and a gross income of over £250,000, or a gross income of over £1 million, this is a legal requirement. If your gross income falls beneath £1 million however, you can choose to opt out of a full audit.
An independent examination is a review of your accounting records in accordance with the Charity Commissions specifications. The aim of this is to provide reassurances to all stakeholders; trustees, funders, beneficiaries and the public – that the accounts have been independently reviewed, and as such are fully compliant. An independent examination is required if your gross income falls between £25,000 and £1 million.