THE IMPORTANCE OF AN AUDIT
Audited financial statements form the corner stone of any business entity’s financial information on which stakeholders can rely. Stakeholders include not just directors and shareholders, but the company’s bankers, other providers of finance, suppliers and even employees.
Under the Companies Act 2006, a company must have a statutory audit unless it qualifies for an exemption or its Articles of Association says it must. To qualify for this exemption for financial years that begin on or after 1 January 2016, a company must qualify as a small company and have at least 2 of the following:
A turnover of no more than £10.2 million.
A balance sheet total of no more than £5.1 million.
50 or fewer employees on average.
Even if a company qualifies for this exemption, it must still have its accounts audited if a member or members holding at least 10% of the nominal value of issued share capital, or holding 10% of any class of shares demands it.
Prospero Accounting Ltd is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Details about our registration can be viewed at www.auditregister.org.uk under reference number C002471632.
Take time to get to know the individuals running the company.
Get to understand the industry the company is involved in.
Understand the markets in which the company operates.
Gain an understanding the risks involved and develop a risk based audit approach.
We make sure that we are in regular contact with you and agree a timetable in advance.
You get a 'no surprises' delivery of the audit report in line with your company's reporting deadlines and agreed cost.
You can, therefore, deliver the financial statements, with an independent audit option and assurance you need, to your stakeholders on a timely basis.