Do I Need an Audit?

As you can probably imagine “do I need an audit?” is a question we are asked a lot.

In the most general terms the answer will be “yes” if your company meets two of the following three criteria:

  1. During this and the last financial year your turnover exceeded £10.2m
  2. During this and the last financial year your business’ assets exceeded £5.1m
  3. During this and the last financial year you had more than 50 employees

There are two exceptions:

  1. Your company is a subsidiary of a group. Unless the entire group meets the small group criteria.  This small group criteria is the same principals and numbers as described above.  (Note a subsidiary company of a group that is not small, may still be exempt if the parent company agrees to guarantee the liabilities of that company)
  2. You are a charity (charities have different criteria) and you can find out more about how we help charities here

The reason that we say that is the answer in ‘general terms’ is that even if your turnover, assets and headcount are below the thresholds above, you may still need to have a statutory audit if:

While these are the ‘official’ reasons for having an audit, there are also several commercial benefits you may also want to consider before you decide whether you need an audit or not:

Ultimately if you are an entrepreneurial fast growth company then there will be a point where having your financial statements audited is beneficial and this is likely to be in advance of the statutory limits.

If you’d like to find out more about our approach to audit (and the reasons we are confident we always deliver much more than just an audit), please click here.

If you still have more questions about your own audit position, please don’t hesitate to email us at post@rowleys.biz and we will be happy to arrange a time for a more detailed discussion.

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Registered with the Institute of Chartered Accountants in England & Wales to carry on audit work in the UK, regulated for a range of investment business activities and licensed to carry out the reserved legal activity of non-contentious probate in England and Wales. Registered with the Institute of Taxation as a firm of Chartered Tax Advisers. . Associate Directors of the firm are not Directors of The Rowleys Partnership Limited and are not subject to the obligations and responsibilities of Directors within Part 10 of the Companies Act 2006.  Any reference to an individual with the job title “Partner” refers to someone who is a Director of The Rowleys Partnership Limited and also a registered member of Rowleys Group LLP (registered no. OC306056)  A list of Directors and Members are available at Companies House. Details of our audit registration can be viewed at www.auditregister.org.uk and details of our probate registration can be viewed at www.icaew.com/probate, both under reference number C001486455. View our Legal and Privacy Policy.