An audit is the examination of the financial report of an organisation – as presented in the annual report – by someone independent of that organisation. The financial report includes a balance sheet, an income statement, a statement of changes in equity, a cash flow statement, and notes comprising a summary of significant accounting policies and other explanatory notes.
Most small companies do not require an audit. SRM Accountants can advise you if you need an audit and if not, you can save on accountancy fees!
However, we aim to deliver hassle free audits and there are good reasons for having an audit even if you are not required by law to have one…
- An audit involves a detailed review of the company’s accounting systems and systems of control and also requires a detailed understanding of the company’s business. Such a review and knowledge can provide increased opportunities to provide proactive business advice on many matters;
- An unqualified audit report can improve the status of the accounts in the eyes of banks and commercial lenders, the Taxman and suppliers who may be seeking credit references, etc;
- A history of accounts with clean audit reports can also be a factor if you ever wish to sell the company or, perhaps, take it to the market;
- The possibility of fraud can be reduced and an audit can act as a deterrent to any potential fraudster.