Auditing accounting
An audit constitutes a thorough examination of a company’s financial affairs. Once completed, the resulting information helps provide business owners and shareholders with a clear understanding of a company’s finances. Audits are carried out impartially, and they identify issues in a business’ accounting practises (while recommending ways to overcome them).
Incidentally, the word audit derives from the Latin word audire, which means ‘to hear’. And while auditing began as an aural process, it is, of course, a great deal more sophisticated these days.
Does my business require an audit?
Yes, all UK businesses require an annual audit, including:
- Limited companies
- Public companies
- Subsidiary companies
- Authorised insurance companies
- Insurance marketing companies
- Banking institutions (including those issuing e-money)
- Markets in Financial Instruments Directive (MiFID) investment firms
- Charities
- Law firms
Please note: this list is not comprehensive and exemptions may apply in certain instances
What if my business doesn’t require an audit?
If this is the case, you need do nothing. However, companies that don’t require a statutory audit may wish to undergo a voluntary examination as its findings can prove to be very instructive.
What are the benefits of auditing?
- Auditing determines whether or not a business fully complies with all statutory regulations (including those laid down by the Companies Act 2006)
- It provides a useful resource regarding a company’s financial health
- It’s a highly effective way of pinpointing issues that can be rectified and/or improved
- It provides a strong platform from which to deliver enhanced profitability
- It offers peace of mind to business owners, stakeholders, suppliers and customers
- It comes in handy whenever you need to request financial support for your business (or for yourself)
- It confers prestige upon a business
Get in touch regarding audits in Ilford
Our Ilford accountants, we can attest to the benefits provided by annual auditing, not only for the reasons outlined but because it plays an essential part in businesses achieving the best possible results in a tough marketplace.
We provide an array of auditing and accountancy services for businesses big and small.
For more details on the auditing process and how it will help your organisation excel, please contact our accountants in Ilford at your earliest convenience.
