Audit Accountants
Audit And Assurance Service
As chartered accountants and registered auditors, our experienced audit and assurance team enables us to provide high-quality audit services to a wide range of our clients. The audit and assurance team also undertakes audits for other accountants who are not registered to carry out audits themselves or where a high level of independence is required.
Financial Freedom Audit Package
At Plus Accounting, we understand the complexities and challenges that come with statutory audit requirements. Our “Financial Freedom” package is designed to provide peace of mind by ensuring your business complies with all financial regulations. From system reviews and forecasting to bookkeeping and management accounts, we cover it all to keep you audit-ready.
How It Works
Step one:
Consultation & Financial Audit
We start with a thorough review of your current financial systems to identify areas for improvement and ensure compliance.
What you get
- Detailed financial audit report
- Quarterly system review and update reports
Step two:
Customised Financial Strategy
We develop a tailored financial plan based on our findings and implement best-in-class systems to meet statutory requirements.
What you get
- Customised financial strategy document
- Annual financial performance review and strategic planning session
Step three:
Ongoing Financial Management and Support
Enjoy continuous support and regular communication to stay on top of your financial health and audit readiness.
What you get
- Monthly management accounts and reports
- Assurance of compliance with statutory audit requirements
Tailored Pricing to Meet Your Needs
We understand that every business has unique financial requirements. Our pricing is tailored based on the specific services you need to achieve audit readiness and financial clarity. Contact us to discuss a customised pricing plan that fits your business.
Do you need an audit?
The audit thresholds are changing for financial years beginning on or after 6th April 2025. The new thresholds are as follows:
- Turnover of more than £15m
- Gross Assets of more than £7.5m
- 50 or more employees
Current Thresholds
For financial year before this date, for a non-group company, you are required to have an audit when you exceed 2 out of the following 3 tests;
- Turnover of more than £10.2m
- Gross Assets of more than £5.1m
- 50 or more employees
Under the small companies regime, companies that don’t exceed these thresholds may be exempt from audit. This exemption is under section 477 of the Companies Act 2006 and companies must include a statement in their financial statements that they have prepared accounts in accordance with the provisions applicable to companies in the small companies regime.
Small subsidiaries may assume, due to their size, that they are eligible for the small companies’ audit exemption. However, they will need to determine if they are part of a worldwide medium or large group and if so, they will be required to have their accounts audited. A UK subsidiary of a UK parent can be exempt if the UK parent confirms certain responsibilities with regards to the subsidiary’s liabilities.
It is also worth noting that due to company law changes brought about by Brexit, a previous audit exemption that was available to the UK subsidiary of an EEA parent company under the Companies Act 2006 is no longer available for accounting periods commencing on 1 January 2021.
Our Auditing Services
Want to learn more?
Get in touch with our in house expert Chris Morey to see how we can help.
Types of Audits
Financial Audits
A financial audit reviews a company’s financial statements to ensure accuracy and compliance with regulatory requirements. It reviews financial records such as the balance sheet and cash flow statement through a structured audit approach.
Financial Statement Audit
Financial statement audit covers the balance sheet, income statement and cash flow statement. The objective is to verify the accuracy and completeness of the financial information. It involves internal and external audits to measure a company’s financial position. An audit report is a key deliverable that provides an opinion on the financial statements.
Auditors follow Generally Accepted Auditing Standards (GAAS) and for international firms International Financial Reporting Standards (IFRS). They review financial records, identify errors and check compliance with regulatory requirements such as the Financial Reporting Council (FRC).
Auditors also perform risk assessments to identify areas of material misstatement. They gather audit evidence through inspections, observation, inquiries and confirmations. Audit planning and execution ensures thorough review and reporting.
International Standards
International audits must comply with IFRS, a set of accounting standards developed and maintained by the International Accounting Standards Board (IASB). These standards aim to bring transparency, accountability and efficiency to financial markets globally.
IFRS is important for companies that operate in multiple countries. It ensures consistency in financial reporting and allows investors to make informed decisions based on comparable data. The Securities and Exchange Commission (SEC) in the US requires cross listed companies to comply with strong auditing standards.
International audits also facilitate global trade by creating trust and confidence in financial reporting. They standardise the way financial records are evaluated and promote international economic development.
Grant Audits
Grant Audits are important to ensure the proper use of funds allocated to organisations through grants. These audits review the accuracy and completeness of financial records related to grants.
Auditors will review the conditions set out by the granting authority and ensure that the expenses claimed are per the agreement.
Objectives of Grant Audits are to ensure funds are used as per grant terms, verify financial reporting and identify errors or misstatements.
Grant Audits promote transparency and accountability.
System and Internal Control Audits
Operational audit reviews the efficiency and effectiveness of a company’s systems and controls. It reviews internal controls, policies and procedures to ensure smooth operations. Operational audit can help identify areas where accounting processes can be improved, highlighting the importance of these processes in financial reporting.
System audit reviews the technical infrastructure and IT systems of the organisation. It identifies weaknesses or vulnerabilities that can impact business processes.
Controls are key to financial reporting reliability. Auditors review control activities to ensure management’s instructions are followed.
Audit programme outlines the specific audit procedures and objectives. It guides the auditors through the audit process to ensure thorough review.
Operations are reviewed to see if resources are used effectively. Auditors look into how processes align with the company’s goals.
Internal controls are mechanisms to reduce risk and ensure financial information accuracy. These controls are tested to prove their effectiveness.
Policies and procedures outline how tasks should be done. Auditors check if these guidelines are being followed across the organisation.
The objective of system and control audit is to provide assurance that the company’s internal systems and controls are working as designed. This ensures regulatory compliance and operational efficiency.
Seeing how these components work together can identify areas for improvement to boost organisational performance.
Statutory Audits
Statutory Audit is a mandatory review to ensure a company’s financial records are accurate. It follows the guidelines set by laws and international accounting standards.
Components:
- Financial Statements: Balance sheet, income statement and cash flow statement.
- Audit Planning: Preparation to ensure thorough review of financial records.
- Execution: Implementation of audit procedures to verify.
Objective: Unbiased review of financial statements to ensure compliance with GAAP and GAAS.
Entities Involved:
- External Financial Audit: Conducted by independent auditors to provide an objective view.
- Internal Financial Audit: Conducted by in-house auditors to monitor and improve internal controls.
Financial Reporting:
- Balance Sheet: Reviews assets, liabilities and shareholders’ equity.
- Income Statement: Reviews revenues, expenses and profits.
- Cash Flow Statement: Reviews cash inflows and outflows within a specific period.
Auditors review the accuracy and completeness of these reports. They ensure compliance with standards from bodies like International Accounting Standards Board and Securities and Exchange Commission.
Financial reporting must be clear and transparent to stakeholders like investors, regulators and management. Statutory audits is key to maintaining trust and integrity in financial reporting.
Non Statutory/Voluntary Audits
Non statutory audits are performed at the organisation’s discretion rather than by law. These audits review financial statements in the same way as a statutory audit including the balance sheet, income statement and cash flow statement. Non statutory audits still have to comply with GAAP or GAAS standards, so it is important to realise that the same amount and standard of work is required.
Companies have non statutory audits for various reasons such as to improve financial reporting and to ensure their financial records are reliable. These can improve an organisation’s reputation especially to stakeholders like investors and are especially useful if the business is up for sale, completing tenders for work.
Internal Audits
Internal auditing is an objective assurance and consulting activity designed to add value and improve an organisation’s controls, processes and operations. By evaluating and improving the effectiveness of risk management, control, and governance processes, internal auditing helps in achieving organisational objectives.
The International Professional Practices Framework (IPPF) provides a comprehensive guide which establishes authoritative standards for internal auditing. It includes core principles, a code of ethics, and various standards aimed at maintaining professionalism and competence in the field.
Audit FAQs
What is an audit
An audit is an independent examination of financial information or processes within an organisation to ensure accuracy and compliance with established standards and regulations. It involves the on-site verification activity, such as inspection or examination, of a process or quality system.
Do you need an audit?
A statutory audit is required if two or more of the following are met:
-
Annual turnover is over £10.2 million
-
Assets are over £5.1 million
-
Average of over 50 employees
You may also want to consider a voluntary audit for the various benefits they can bring. Find out more in our guide to when you need an audit.
How much does an audit cost?
Audit fees will vary depending on the size and nature of the audit.
Get in touch to find out how we can help your business.
How do I need to prepare for an audit?
Preparing for an audit can be a challenging task, but with the right approach, it becomes manageable. The key to a successful audit is thorough audit preparation, ensuring that all your financial records are accurate, complete, and accessible.
Do you audit my industry/sector?
Yes, we are have experience in many industries and can handle audits of all types and industries.
You can see some of our client testimonials in our Audit Case Studies section.
What is Audit and Assurance?
Audits involve a systematic examination of an organisation’s financial records. External auditors review these records objectively to ensure they accurately reflect financial performance, thoroughly evaluating all the accounting entries in the company’s financial statement to check for accuracy and compliance with accounting standards and principles. Internal auditors also play a crucial role in reviewing financial records for accuracy, ethical presentation, and adherence to accounting standards.
Assurance services, on the other hand, enhance the reliability of information utilised for decision-making. These services involve professionals evaluating processes, controls, and data, ensuring stakeholders can trust the provided information.
Difference Between Audit vs Assurance services
Audits and assurance services, while related, serve different purposes. An assurance engagement involves expressing a conclusion to enhance confidence in the evaluation of a subject matter against criteria. Audits involve external auditors conducting examinations of financial statements to check for accuracy, adherence to regulatory standards, and prevention of fraud or errors. For instance, auditors may verify transaction records to ensure they comply with accounting principles.
Assurance services, in contrast, encompass a broader range of activities aimed at improving information reliability. These services focus on evaluating processes, controls, and data to enhance decision-making capabilities. Assurance might involve assessing the IT systems used for financial reporting to ensure data integrity.
Key differences stand out between these activities:
- Scope: Audits specifically target financial statements, while assurance covers various information systems.
- Purpose: Audits verify compliance and accuracy, whereas assurance improves reliability for better decision-making.
- Examples: Audits include financial audits, compliance audits, and forensic audits. Assurance services include process improvement reviews, risk assessments, and control evaluations.
External and internal auditors play distinct roles in these processes. External auditors are independent and not part of the company being audited, ensuring an unbiased examination. Internal auditors, on the other hand, are company employees who continuously monitor and evaluate the company’s internal controls and processes.
Understanding these distinctions helps stakeholders select the appropriate service for their needs.
Importance of Audit and Assurance
Audit and assurance services play a critical role in promoting organisational transparency and economic stability by evaluating financial statements. Independent auditors are essential in providing unbiased reports, ensuring that the financial records are accurate and in line with accounting standards. These services foster trust and minimise risks, ensuring entities operate effectively.
Enhancing Transparency
Audit and assurance services enhance transparency by providing an independent evaluation of an organisation’s financial statements. Internal auditors play a crucial role in ensuring the accuracy and ethical presentation of financial records. Transparent financial reporting, according to the International Federation of Accountants, builds investor confidence and promotes informed decision-making. For instance, annual audits reveal a company’s financial health, while assurance services like sustainability reporting ensure non-financial metrics’ accuracy.
Improving Economic Stability
Economic stability improves when audit and assurance services identify and mitigate financial risks. The International Auditing and Assurance Standards Board states reliable financial information underpins market confidence and economic growth. Financial audits, for example, detect discrepancies in financial records, reducing fraud risk, while assurance services like risk assessments help organisations anticipate and manage potential financial threats.
The Audit Handbook: unravelling the what, why and how of audited accounts
September 19, 2023
Let’s take a step back and take a look at the what, why and how of audited accounts in your complete guide to audits.
Auditing Hub
Why should you have an audit?
Why are audits Important?
Can an audit really add value?
Do you require an Innovate UK Independent Accountants Report?
Financial Audits
Statutory Audits
How to Prepare for an Audit
Audit Case Studies & Testimonials
Audit Guides
Does my business have to be audited?
Can audit fees be paid in advance?
Audit of Less Complex Entities – what does this mean for auditors?
Case Study: Cold Coffee Inc – using analytical procedures to assess risks
Does my subsidiary require an audit?
Have you received a grant that requires an audit?
Transform Your Audit Process: Benefits of Using Caseware Audit
Navigating Energy and Carbon Reporting: An Audit Focus Perspective
What is assurance and what are the benefits?
Audits by Company Type
Audits for Charities
Audits for Solar Companies
Franchise Audits
SRA Audits
See how we can help you...
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