Companies of a certain size and companies which are public, insurance companies, involved in banking or investment firms regulated by the Financial Conduct Authority (FCA) are required by law to undertake a statutory audit in order to ensure financial transparency and efficiency.
A statutory audit is not required for a company (including an LLP) if it meets two of the three criteria listed below:
- Turnover not more than £10.2 million
- Gross assets not greater than £5.1 million
- Not more than 50 employees
Circumstances can dictate that these limits are subject to adjustment or additional factors. Examples, inter alia, include:
- First period of accounts
- First period where limits are exceeded
- Companies which are part of a group
- Periods which are not exactly 12 months
There are different criteria in respect of audits for charities and other not-for-profit organisations. In addition, certain entities regulated by the FCA are subject to statutory audit irrespective of the criteria above. At Perrys Chartered Accountants, we work with our clients to ensure that they are able to fulfil their statutory obligations and file their audited accounts in an accurate and timely manner.
Our exceptional approach to client relations means that we develop a deep understanding of their individual businesses and our audit service goes beyond simply documenting and reporting the numbers.
Our tailored service offers exceptional value for money and enables us to explore the implications on the business, providing proactive advice and insight and giving recommendations on efficiency and improvement for the benefit of our clients, helping them to avoid issues in the future.
Non Statutory Audit Reports
The majority of small private limited companies are exempt from undergoing statutory audits of their annual accounts - unless the company's articles of association say they must or enough shareholders ask for an audit to be carried out. Regardless of whether your company is usually exempt from an audit, you must get your accounts audited if shareholders who own at least 10% of shares (by number or value) ask you to do so.
However, those businesses which are not obligated to undergo a statutory audit may still opt to be audited by a reputable independent body due to a number of benefits this can provide. A non-statutory audit report can help businesses comply with tax or banking obligations, can act as a financial health check and flag up any potential issues or areas for improvement. Our audit report will provide an independent opinion on these aspects to meet regulatory and other stakeholder requirements.
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