Exeter Accountants Audit
A statutory audit is an audit that is required by the UK government and does not apply to all companies.
Who is exempt from an audit?
Any charity that falls below a gross income of £1,000,000 or less for accounting periods ending on or after 31 March 2015 (£500,000 or less for prior accounting periods), unless both their gross assets exceed £3.26m and their gross income exceeds £250,000), can choose to opt out of a full audit. Most are required to obtain an alternative assurance service, independent examination.
Companies that qualify as small companies under Companies Act 2006 are usually exempt from audit, unless they are members of a group or are charities and required to follow the charity audit thresholds.
The definition of a small company: a company is small if for both this year and last year it was not ineligible, and it met two out of three of the following criteria:
For periods beginning on or after 1 January 2016:
Total assets <£5.1m
No of employees <50
An audit can also be performed on companies below the above thresholds if the shareholder require it or its felt that an audit would give outside user more reliance on the accounts, for example for bank borrowing.
Who can perform an audit?
Generally, an audit is performed by a qualified accounting firm who are registered to carry out statutory audits. The auditor’s goal is to make sure that the financial statements issued by a company are accurate and comply with FRS102.
If you need more information regarding an audit, then please contact us .