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FIRST OF ALL - DO YOU NEED AN
AUDIT ?
·
IF your turnover is below £6,500,000 per annum OR your total assets
have a value below £3,360,000
·
AND you have not received a request from a shareholder
for an audit
·
AND you are not within certain specialist categories
only then can you opt not to have
an audit.
BUT you may feel more
comfortable with your accounts and systems if an audit is performed.
OR your bank may
require an audit to take place.
SECONDLY - WHAT ARE THE BENEFITS TO YOU OF AN AUDIT ?
EFFICIENCY - Within your
organisation there are controls which exist to ensure maximum efficiency to
all aspects of the business. An audit can assist in identifying those areas
where basic controls are weak and can highlight to management shortcomings
in the overall business structure. Where weaknesses exist the audit enables
you to address these areas in order to increase efficiency and reduce
costs.
COMPLIANCE – Current
statutory requirements mean that you have to be aware of all aspects of
accountancy rules. The audit identifies those areas where the company’s
financial statements are deficient so as to ensure that you comply with
generally accepted accounting principles. Customs are starting to align the
taxation treatment with the accounting treatment.
SECURITY - The prevention
and detection of fraud, both internally and externally, can be aided by
suitable audit techniques.
Terence L
Smith & Co assist our clients with the statutory requirement for the
audit of limited companies being authorised by the Institute
of Chartered Accountants in England and Wales.
DAVID SHORES & CO
Business Advisors & Chartered Accountants
36a
Station Road, New Milton, Hampshire, BH25 6JX (Registered Office)
Registered in England No. 1512874
Find out more about US at: DS&Co
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