When it comes to the financial well-being of your business, audits play a pivotal role. For many, audits might appear as mere statutory obligations, but at PKPI, we view them as an opportunity to collaborate with you, facilitating the advancement of your business.
Audit Support & Guidance
What is an Audit?
An audit is a meticulous examination conducted by an independent party to evaluate an organization's financial accounts and records. The primary purpose is to ensure that these records have been maintained accurately and adhere to established accounting principles, concepts, legal requirements, and accounting standards. Moreover, an audit is intended to present a true and fair view of the organization's financial state as of the accounts date.
Why Do Audits Matter?
Audits serve several essential purposes:
1. Compliance Requirements
In many cases, an audit is a legal obligation to ensure compliance with regulatory standards and reporting. This ensures that the organization follows the necessary financial regulations and guidelines.
2. Investor Assurance
Investors seek assurance that the financial information presented by the organization is reliable and accurate. An audit provides this crucial reassurance, enhancing investor confidence.
3. Process and Control Review
Audits offer a comprehensive review of the organization's processes and controls. They help identify areas where improvements can be made, leading to more efficient operations.
Legal Requirements for Audits
Companies are legally mandated to undergo external audits if they meet at least two of the following criteria:
Annual Turnover: The company has an annual turnover exceeding £10.2 million.
Assets: The company's assets are valued at more than £5.1 million.
Employee Count: The organization employs an average of more than 50 individuals.
Statutory Audit Reports for Limited Companies
Ensuring compliance with all legal requirements, our statutory audit reports provide a thorough analysis of your financial data.
Government and EU Grant Audit Reports
We specialize in auditing grant-related finances, ensuring transparency and accuracy in financial reporting.
For nonprofit organizations, our charity audits provide the assurance of sound financial practices and compliance with regulatory standards.
Solicitors Accounts Rules
We offer expert audits that align with Solicitors Accounts Rules, guaranteeing financial integrity and compliance.
When making important business decisions, our due-diligence audits provide you with the crucial insights needed to mitigate risks effectively.
Our internal audits offer an independent evaluation of your internal controls and financial processes, identifying areas for improvement.
1. Why audit is important?
It is to ensure that financial information is represented fairly and accurately. Also, audits are performed to ensure that financial statements are prepared in accordance with the relevant accounting standards.
2. What is the audit threshold in the UK?
The majority of standard private limited companies (i.e. those having their own legal entity) are subject to an external audit if they meet any two of the following criteria: Their turnover is more than £10.2 million. They have assets totalling in excess of £5.1 million. They employ more than 50 people.
3. Do all UK companies require an audit?
In the UK, all companies are mandated by law to undergo an audit, unless they meet specific requirements that make them eligible for exemption.
4. How Often Do You Get Audited in the UK?
Tax audits in the UK occur approximately every five years, with only a small percentage of income tax and corporation tax returns subject to investigation each year. The likelihood of undergoing an in-depth tax investigation rises if HMRC suspects underpayment.
5. How Long Does an Audit Take in the UK?
The duration of a UK audit is flexible, influenced by the organization's characteristics. Preparatory work precedes the audit, and the goal is to issue the final report within 30 working days. Audit timelines vary based on complexity and organizational requirements.
6. How long can an auditor audit a firm UK?
Auditors in the UK can audit a firm for a maximum duration of 10 years, after which the audited entity must organize a tendering process to select a new auditor. The process is governed by specific regulations that outline the criteria for auditor selection.
7. Who regulates UK auditors?
The Financial Reporting Council (FRC)
The Financial Reporting Council (FRC) promotes transparency and integrity in business. It regulates auditors, accountants and actuaries, and sets the UK's Corporate Governance and Stewardship Codes. FRC is an executive non-departmental public body, sponsored by the Department for Business and Trade.
Looking for an experienced audit accountant?
Partner with PKPI Chartered Accountants to benefit from our expertise and ensure that your audit experience is both insightful and valuable.
Contact our expert team at 01753 527069, or simply email us at firstname.lastname@example.org. One of our team members will be in touch shortly.
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