Even if a company is below these thresholds it will be required to have an audit if it is part of a group which breaches certain size thresholds. Additionally, sometimes the company’s articles or the shareholders will require an audit. Therefore, even small companies can be required to have an audit

Yes – any UK company that is a subsidiary of a UK parent company can qualify for exemption from audit under s479a of the Companies Act 2006 as long as it meets the following conditions:

The UK parent company provides a parent company guarantee under s479c of the Companies Act 2006; and

The UK parent company prepares and includes the relevant subsidiary in its consolidated statements for that period (or an earlier period); and

The parent undertaking discloses in the notes of the consolidated accounts that the company is exempt from the requirements of auditing the individual accounts;

The directors of the company deliver to the registrar on or before the date that they file the accounts for that year:

a written notice of the agreement that no members have required an audit

the statement referred to in s479c(1)

a copy of the consolidated accounts including the audit report.

Yes, we have regular service line and sector specific events – both online and in person.
See upcoming events for details.

To maximise efficiencies from your financial statements audit, we recommend the following:
Reconciled financial records – Ensuring all numbers have been reconciled back to supporting schedules
Version control – Ensuring minimal changes to the numbers once passed for audit
Communication – Setting clear expectations in advance on timings, logistics, requirements etc
Preparation – Ensuring the team is available for the agreed dates and information is provided in readiness

As part of our audit compliance work we are working with a company called Platformed which uses AI to assess clients’ IT systems.

This ensures compliance with auditing standards, however also adds value to our clients as it assesses the design, implementation and effectiveness for general IT controls and key finance controls.

This means clients are able to to identify any IT weaknesses that could have a big impact to the business.

How the process works:
1 Platformed’s AI system automatically classifies client complexity and identifies risks of material misstatement to align with ISA 315

2 It then automatically assess control design, implementation, and operational effectiveness, with linked evidence.

3 A report is generated that details the findings and any perceived risks

The objective of an audit is to form an independent opinion on the financial statements of the audited entity. The opinion includes whether the financial statements show a true and fair view, and have been properly prepared in accordance with accounting standards.

A misconception is that auditors are required to identify all misstatements. However, they are responsible for identifying material misstatements, not all misstatements.

Charities and Not-for-Profit audits

Pension audits

SRA Accountant’s Report Assignments

Grant audits

Assurance reviews

Agreed up procedures

Internal control assurance review

IT audits

ESG audits

Aside from the importance of the legal requirements for a statutory audit, the undertaking of the audit itself provides important and valuable insight.

An audit determines whether an organisation is providing a true and fair view of its financial performance and position, which on its own is something any organisation wants to achieve.

Providing comfort over the accuracy of management accounts, or revealing systematic errors occurring throughout the year, a year end audit is critical to decision making for an organisation placing reliance on management information. The process through which an audit is undertaken challenges the robustness of the internal controls and processes an organisation has in place, giving an external perspective and valuable feedback.

An audit provides value by enhancing trust and ensuring compliance.

Though audit is a compliance service, we also aim to add value through the following:

– Recommendations on the management report – any areas where we think controls or processes could be improved

– Keeping you up to date – through technical training, topical webinars, sector insights
– Staff retention – we understand the importance of continuity
– Specialist input – We have access to in-house specialists to support the audit team in any highly complex areas which require special expertise

– Part of a global network – we can link you to experts all across the world