Audits – a thorough MOT for your business
4th June 2019
An audit is an official inspection of a company or organisation’s accounts, usually carried out by a qualified accountancy practice – auditing is a core part of our work here at HB&O.
While the turnover threshold for limited companies requiring an audit is now £10.2m*, we regularly work with companies that choose to undergo the process to give them a detailed insight ‘under the bonnet’ of their business.
Key benefits of audits include the opportunity to spot problems early and provide useful strategic insight into future pressures and needs which may affect your organisation’s future.
A detailed and independent check of assets, creditors and debtors, along with short and long-term liabilities, provides a transparent overview your company’s financial health, with a clear set of actions required to address any issues. Essentially – it’s your business MOT.
What does an audit entail?
There are generally four stages to an audit:
- planning and designing the audit approach
- testing the company’s internal financial controls and evaluating the company’s recording of transactions
- analysing or testing a company’s financial records to ensure that the numbers add up
- producing an auditor’s report.
As well as providing the robust external analysis needed to verify your company’s position, at HB&O we focus on providing meaningful reports.
Starting with a close understanding your business, the issues you face in your sector, and how this might impact on your organisation’s financial statements and regularity, we identify critical audit areas to ensure our service meets your needs.
We check financial records, receipts, invoices, bank statements and compare financial information with non- financial company information to check consistency. All the findings are drawn together in a comprehensive report for your shareholders or trustees.
Once accepted and approved by you, our report is signed and dated before being filed with Companies House.
Simplifying the process
If you use cloud accounting and your company’s accounts, reporting and record keeping are in good order, this will make the audit easier and quicker to complete.
While a bit of effort will be required to provide the information we need, the resulting audit report will provide you with valuable insight and ideas to help you build your business in the future.
To find out more about our audit services or for advice on how you could improve your reporting and record keeping processes, contact Mark Ashfield on 01926 422292 or Wayne Gutteridge on 02476 306029.
*For financial years that begin on or after 1 January 2016, your company may qualify for an audit exemption if it has at least 2 of the following:
- an annual turnover of no more than £10.2 million
- assets worth no more than £5.1 million
- 50 or fewer employees on average
For advice on whether your company or charity requires an audit, please contact us: firstname.lastname@example.org