Many people think of the annual visit of the auditors as a stressful and worrying time, but it doesn’t have to be that way. Whether you’ve had an audit before or this is your first audit then there are some things you can do to prepare and make sure the process goes as smoothly as possible.
An audit is a method of giving confidence to the shareholders that their money is being used in a reasonable manner. It won’t guarantee to uncover fraud, but instead will look to see if there are enough management controls in place that fraud is minimised. Audits are also used by external stakeholders to ensure that the company they are looking at has true and fair accounts.
Many companies in the UK don’t require an audit, if your company has a turnover of less than £6.5 million, assets of less than £3.36 million and average less than 50 employees then an audit isn’t required. You will need to complete an Audit Exemption Statement and some types of company may still be required to have an audit anyway or their shareholders can ask for one.
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