Article
Do I need an audit and what does it consist of?
Article
Do I need an audit and what does it consist of?
17 Feb 2021
1 minute read
A statutory audit is required when a UK Limited company or a Limited Liability Partnership (LLP) meets certain criteria. Auditors report to the company’s shareholders (or members) on whether the annual accounts show a ‘true and fair view’ of the company’s financial activity and position.
A statutory audit is required when a UK Limited company or a Limited Liability Partnership (LLP) meets two or more of the following criteria:
- A turnover of greater than £10.2m
- Total assets of more than £5.1m
- More than 50 employees
Auditors report to the company’s shareholders (or
members) on whether the annual accounts show a ‘true
and fair view’ of the company’s financial activity and
position.
How does a company benefit from being audited?
It can be beneficial to opt for an annual audit, whether or not the above criteria have been met. You may wish to do so for the following reasons:
- Shareholder reassurance
- Planning for sale
- Long term growth / investment plans
- Reduce the likelihood of fraud
- Gain insight into systems and process improvements
- To audit grant funding
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Need expert advice?
Speak to an expert for advice on
+44-1865 292200 or get in touch online to find out how Shaw Gibbs can help you
Email
info@shawgibbs.com
