Why have an audit?

Friday 20 September 2019
by Darren O''Connor - Partner

Contact Darren O''Connor

For some businesses the audit process is mandatory but just because you don’t require one by law doesn’t mean you should write it off. We’re here to answer the question: why have an audit?

Who requires an audit?

Audited financial statements are a statutory requirement if the business meets at least two of the three following criteria:

• turnover exceeds £10.2 million
• gross assets exceed £5.1 million
• business employs more than 50 staff

What does an audit do?

During an audit a team of experts will go through a sample of your accounts to ensure that your business is running smoothly. They will also be able to detect any anomalies which could lead to problems in the future.

What are the benefits of having an audit?

Besides those mentioned above there are a whole host of benefits to having an audit.

• An audit adds to the reliability and credibility to the published financial statements. This may be particularly useful to potential purchasers if the business owner(s) are planning to sell the business in the next few years.
• Undertaking an audit will enable your advisors to measure and offer advice on the businesses Key Performance Indicators which will have real benefit to the running, and profitability, of the business going forward.
• An audit will provide the stakeholders not directly involved in the day to day accounting function of the business the peace of mind that the numbers are accurate and processes and procedures are in place to minimise the potential for inaccurate accounting and in the worst case scenario, fraud.

At James Cowper Kreston, audit work is tailored to the risks in the business. We will provide you with confidence that the financial statements are materially correct and reflect fairly on the business. We will also provide useful advice along the way to help your business grow and achieve its goals.

If you would like to discuss your audit options please contact me using the details listed above or by submitting an enquiry.