As registered auditors, Clear & Lane Chartered Accountants have substantial experience not only in the audit of private limited companies but also other regulated bodies including professional partnerships, charities and academies.
Do I need an audit?
On 6 September 2012 the government announced key changes to company and LLP audit and reporting requirements. The changes remove the need for many more companies and LLPs to have an audit and apply to financial years ending on or after 1 October 2012.
The changes were marketed by the government as saving businesses millions of pounds in reporting and accountancy fees. There are, of course, a number of legislative details and other factors for clients to consider in making a decision whether to dispense with an audit.
The government has announced that:
- For small companies the audit thresholds will be aligned with small company accounting thresholds (turnover £6.5m, gross assets of £3.26m and employees of 50 or below). Companies need to not exceed 2 out of 3 to claim exemption and be eligible to opt out of audit.
- For qualifying parent companies and their subsidiaries that an option will be available to not have subsidiaries audited and instead for the parent to provide a statutory guarantee over their subsidiaries’ liabilities, and
- Dormant subsidiaries will be exempt from the requirement to prepare and file accounts.
For companies with financial years ending before 1 October 2012 the previous rules will apply. In these circumstances, meeting one or more of the criteria below will require you to have a statutory audit:
- Turnover – Where a company or limited liability partnership has turnover above the statutory audit limit, currently £6.5 million excluding VAT.
- Gross Assets – Where a company or limited liability partnership has gross assets of more than the small company limits, currently £3.26 million.
- Regulated industry sector – Examples of regulated businesses include financial services providers, charities, friendly societies and solicitors. We can provide specialist audit services for these sectors.
- Shareholder request – Where a shareholder deposits a notice under Section 476 of the Companies Act 2006 requiring an audit be carried out.
- Lender request – Where the bank or other lender requires that audited financial statements be prepared.
Even though an audit is not required by law, many companies opt to have their accounts audited, either for their own peace of mind or as a requirement of their financiers.
The audit, be it statutory (for limited companies) or voluntary, provides an excellent opportunity to review the development of your business and identify potential weaknesses in your financial management, reporting systems, internal controls or any other areas.
Certain organisations, professional bodies and charities for example, have additional regulations and so require specialist audits.
We provide regulated sector services for:
- Pension Schemes
- Financial Services Organisations
- Law Firms
- Independent Schools
- The Further Education Sector
- Housing Associations
- Registered Charities
- Clubs and Friendly Societies
The Audit Process
Stakeholders require responsible judgments from independent auditors. We provide this service through our understanding of each client’s industry, key value drivers, marketplace practice and competitive positioning. Our audit team is always fully briefed and led by a Partner and Manager who have first-hand experience of the client's needs.
The information generated by the reporting process is an excellent basis for constructive advice. We highlight this advice in our summary of recommendations on completion of the audit.
We ensure that audit work is completed as efficiently as possible without disrupting our clients' day-to-day operations.
The various audit and accounting services can take care of your statutory requirements. Each can:
- Satisfy you that all is well
- Lend the credibility of an outside view to your accounts
- Show up weaknesses and opportunities within your business
In any case, one or other may well be needed in order to satisfy the demands of third parties for reliable information.
We would be delighted to review your requirements and provide a fixed fee quotation.
Please contact us on Leicester 0116 261 0061 or email our Audit partner Ian Hunt at firstname.lastname@example.org or indeed any other partner - see here for there full contact details.