Audit & Assurance Services

Though business owners traditionally regard the annual audit and preparation of annual accounts as a cost centre - a necessary evil that adds no value to the business - we strive to transform it into a profit centre.

Besides helping you meet the statutory requirements, we also take the opportunity to conduct a review of your financial and management systems. This can often result in our identifying potential problem areas and recommending opportunities to improve your business performance. We discuss the problems and opportunities with you and help you implement any agreed solutions.

We see the preparation of your annual report as an opportunity to enhance your external image. A well-prepared report can have a considerable positive impact on the perceptions of investors, potential finance sources, customers, prospect, referral sources, and even your own staff - all of which greatly improves your business prospects for the future.

Audit exemption options for small companies and subsidiaries
The government has recently announced changes to company law that allow many companies and limited liability partnerships more choice in deciding whether to have a statutory audit.  The changes apply to financial years ending on or after 1 October 2012.   

Broadly, there are two main types of company and limited liability partnership, collectively referred to as ‘companies’ below, affected by the changes: 

  • companies and groups that currently qualify as ‘small’ under company law but that are not exempt from audit because of their turnover or balance sheet total; and  
  • subsidiary companies that currently require an audit. 

The changes introduced are: 

  • align audit thresholds with small company thresholds, meaning that virtually all companies and groups that qualify as small can choose whether they wish to have an audit or not; and 
  • allow qualifying parent companies and their subsidiaries to decide whether or not to have a subsidiary audit, regardless of its size.  Instead, parent companies can opt to provide a statutory guarantee over the subsidiary’s liabilities.  Dormant subsidiaries will also be exempt from the requirement to prepare and file accounts, subject to the provision of a similar guarantee. 

There are, as always, a number of legislative details and other factors to consider before a decision can be made to dispense with an audit and we have enclosed the answers to some of the key questions you may have. 

The changes remove the legal requirement to have a statutory audit from many more businesses and therefore allow us to provide a more flexible service to you.  The decision to dispense with an audit needs to be considered carefully and we are happy to discuss in more detail the benefits of the options available to you.  You may decide that you don’t require but would benefit from the greater level of comfort provided by an ICAEW Assurance report rather than a Compilation report.  We have produced two documents to help guide you through the decision a) New Audit Exemption Options helpsheet and b) Audit and Assurance decision chart