Some companies are required by law to have an audit carried out by an appropriately qualified accountant, and other companies choose to have their accounts audited voluntarily. Common reasons for a company needing an audit are:
- They exceed the audit thresholds;
- They are in a regulated industry sector;
- It has been requested by shareholders or directors;
- or it has been requested by a lender.
Typically audits tend to be required by medium-sized or large businesses, or subsidiaries within larger groups of companies, or by charities with an income of more than £1m, but many companies choose to have an audit even though they are not required to do so.
This is because an audit provides assurance that financial statements give a true and fair view of a company and are free from material misstatement. They help provide shareholders with a sense of accuracy and help enable them to make better decisions, and an external audit removes any bias when it comes to the state of a company’s finances. As a result of an audit, stakeholders may effectively evaluate and improve the effectiveness of risk management, controls and governance processes.
As part of an audit, Horner Downey will:
- Collect and analyse data to detect deficient controls, material misstatement, fraud and non-compliance with laws, regulation and management policies.
- Inspect account books and accounting systems for efficiency, effectiveness and use of accepted accounting practices to record transactions.
- Prepare detailed reports on audit findings.
Our audit services are extremely competitively priced, and give a company the reassurance that they are meeting their legal obligations, as well as offering opportunities to improve their accounting practices.