Audit

3rd August 2017

What is an audit? 

In simple terms, an audit is the process of assessing a set of company accounts to determine if they are accurate and an honest representation of the company’s affairs.

All private limited companies are subject to an annual statutory audit if they do not meet at least 2 out of the following 3 conditions:

  • has turnover of less than £10.2 million
  • has total assets worth less than £5.1 million
  • employs fewer than 50 employees.

Process

The audit process is usually carried out by a qualified accountant, who will also be a registered auditor.  The auditor is responsible for examining your company’s accounts and financial statements and making sure they are compliant with regulatory authorities, such as Companies House and UK GAAP.

Before the auditor commences with an audit, they must fully understand the company – from its industry sector and regulations to objectives, strategies and policies in place.

There are 4 key stages to an audit:

  • designing and planning the audit
  • testing financial controls and evaluating the recording of transactions
  • analysing financial records and making sure they add up
  • issuing an auditor’s report.

Benefits

Some companies will undergo a non-statutory audit to ensure their accounts are accurate and in line with legal regulations.  This can help provide comfort to your investors or shareholders that your accounts are financially sound and that the company is meeting its regulatory requirements.  External funders, such as banks, or potential investors may require an audit for similar reasons. 

As part of the audit process, the auditor will also report to management on the quality of internal controls maintained, identify where weaknesses exist, and provide recommendations on how these can be improved – valuable feedback for any company, whether large or small.

Contact us

Whatever the reason, there are many benefits to having externally audited accounts. If you would like more information on audited accounts or would like to discuss your audit requirements, please contact us on 0141 221 257 or email contact@thomasbarrie.co.uk to find out more.

If you’re interested in working with us and wish to discuss your requirements then please call us on 44 (0) 141 221 2257 or email contact@thomasbarrie.co.uk

Atlantic House
1A Cadogan Street
Glasgow
G2 6QE

 

There is another entrance to the building at 45 Hope Street, G2 6AE.

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