Audit Services
Many people (including bank staff who should know better) say they require an audit when they don't.
If A Bank/Similar Say They Want "Audited" Accounts
Typically, they mean accounts prepared by a suitably qualified, independent firm/individual.
The same applies to most small charitable entities. They simply require someone external and objective to provide some assurance that the figures are reliable.
Do You Need A Statutory Audit
The threshholds before a statutory audit is required have recently been increased. For periods starting on or after 6 April 2008, the threshholds are:
- Turnover - Not more than £6.5 million.
- Balance Sheet total assets - Not more than £2.8 million.
- Employees - Not more than 50 employees.
For periods starting before 5 April 2008 the threshholds were the same except turnover was £5.6 million.
There are some other situations where a statutory audit will be required, such as being listed on a recognised stock exchange.
What A Statutory Audit Entails
If you do require a statutory audit, you will need to employ the services of a registered auditor firm.
In addition to requiring all the regular information and answers a non-auditor firm would require, they will also typically need to see a lot more third party documentation to prove figures in the accounts. One they are finished, the registered auditor will put their name to the accounts, stating they are "materially correct".
You can volunteer to have a statutory audit even if one is not required. This may be useful if you are considering selling your business in the near future. Audited accounts will hold more weight with a potential buyer (less scope for them to be manipulated).
Aside from that, having a statutory audit requires a lot of extra work, significant extra costs, with little tangible benefit to the business owner. We therefore do not typically recommend an audit unless one is required.
Maslins are not registered auditors, therefore we cannot sign off statutory audits. However, we can help you prepare for an audit and ensure as much information is ready in advance as possible, and can also recommend a Tunbridge Wells based, reasonably priced firm to perform the audit.
