Reasons for being audited
All private limited companies are subject to annual statutory audits unless they meet two of the following conditions annual turnover of no more than £10.2 million, assets worth no more than £5.1 million, 50 or fewer employees.
The audit process
Audits are conducted by external auditors. These are usually independent accountants who ensure your financial statements are accurate and compliant with UK GAAP. There are five stages to an audit:
planning the audit approach
testing the company’s internal financial controls
evaluating the company’s recording of transactions
analysing or testing a company’s financial records
producing an auditor’s report.
Your auditor will ensure they understand your business’ industry, regulators, accounting policies, objectives and strategies, and business risks before commencing the audit.
They will check financial records, receipts, invoices, bank statements and compare financial information with non-financial company information to check consistency.
The auditor’s final report will include their conclusion as to whether the company’s financial statements are accurate and fairly presented before signing it, dating it and filing it with Companies House.
If you wish to speak to us about filing your annual accounts or the ABG approach to auditing please contact us on 020 7330 0000.