Is it time for an audit?

Written by Paul Murphy


July 12, 2023

Has it been a while since your last company audit? If so, the EKWilliams Audit and Assurance team have got your back!

Undertaking an audit is a legal obligation for some companies, whereas others may simply benefit from the insight that an audit can give them into the accuracy of their financial reports. 

Auditing is carried out to understand whether the information presented in a company’s financial report reflects their financial position at a given date. At EKWilliams, we understand the sector-specific needs of your company, and can use our insight to plan for your future.

Which companies are required to carry out an audit?

If your company meets at least two of the following criteria, then it is subject to an external audit:

  • turnover of more than £10.2m
  • balance sheet total of more than £5.1m
  • more than 50 employees.

You can find a full list of the companies required to undergo an annual audit here.

What if I am exempt from auditing obligations?

Even if you are exempt from audit obligations, we would recommend that your company takes part in a voluntary audit. This will support the integrity of any financial reports that your company submits to HMRC, and will prove especially valuable if there are any sudden changes to your company’s finances or operations – both good and bad.

Credibility and transparency counts for a lot in business. No matter what industry you work in, it’s a given that your clients will feel reassured to know that they’re working with a stable, honest company.

You work on your company’s operations day-in-day-out, so it’s likely that you will struggle to identify weaknesses in your business model. However, an auditor will be able to pick out the minor details that could boost your success, or even help you avoid a hefty fine!

It’s a good idea to get into the habit of regular voluntary audits before your company reaches the size that it would be required to undergo statutory audit. This way, the process won’t catch you out, and you will benefit from in-depth knowledge of how auditing works best for your company.

At EKWilliams, our service is specially catered to you and your business in order to deliver the services that you need to enable business growth and development.

For more information, please do not hesitate to get in touch with our Audit and Accounts Manager, Paul Murphy on 01942 816 512 or at [email protected].