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Audits

Do you know why you need an audit
or why you should have one?

For accounting periods starting on or after 1 January 2016 audit thresholds are aligned with small company size criteria meaning companies (including LLP's) are exempt from having a statutory audit if they meet 2 of the 3 following conditions:

• Turnover not exceeding £10.2 million.
• Balance sheet total not exceeding £5.1 million.
• Average number of employees not exceeding 50.

Subsidiary companies can be exempt from audit where their parent company guarantees their liabilities.

Other reasons why you will be required by law to have a statutory audit are:

1. You are a PLC or a banking, insurance or finance company (or a subsidiary of one of these);
2. You are required by your professional or trade organisation to have your accounts audited;
3. Your shareholders do not agree to opting out of the audit.

We aim to deliver hassle-free audits and there are good reasons for having an audit even if you are not required by law to have one:

• An audit involves a detailed review of the company’s accounting systems and systems of control which requires a detailed understanding of the company’s business. Such a review and knowledge can provide increased opportunities to provide proactive business advice on many matters;
• An unqualified audit report can improve the status of the accounts in the eyes of banks and commercial lenders, the Taxman and suppliers who may be seeking credit references, etc;
• A history of accounts with clean audit reports can also be a factor if you ever wish to sell the company or, perhaps, take it to the market;
• The possibility of fraud can be reduced due to an audit acting as a deterrent to any potential fraudster.

Details about our audit registration can be viewed at www.auditregister.org.uk as follows:

• Rice & Co Limited reference number C003161675
• Rice & Co Holdings Limited reference number C005281192

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Please contact us if you need further advice, have any questions about our services, would like a free consultation or a fixed fee quote.