Statutory Auditing Services in the United Kingdom
Ensure legal compliance in your financial reporting with 3E Accounting’s statutory auditing services in the UK.
To determine whether a company has been keeping a fair and accurate account of its financial transactions, audits are done. Auditors will review and analyse a company’s financial records as well as other areas. Financial audits, especially those of a statutory nature, are a legal requirement in the United Kingdom. Most banks, creditors, etc. rely on a company’s statutory audit to ascertain its financial health. Independent statutory audits can boost a company’s credibility as well as credit ratings. As it is preferable to have an objective evaluation done, engaging statutory auditing services in the UK is a good option.
A Professional Look at the Accounts
Ideally, audits should be done by all companies, with the possible exception of dormant businesses. Audits ensure compliance and can identify and reveal risks as well as areas for improvement. They increase stakeholder confidence and, in some instances, can help improve internal controls and systems. Aside from statutory reasons, audits ensure accountability, and it is considered a good business practice to get one done.
An audit is generally required in the UK if a company is a corporate body with traded shares. This extends to companies which are a subsidiary or a public company unless a specific exception applies. Exceptions may arise for companies where two of the following three conditions are met:
- Gross assets: less than GBP 5.1 million.
- Employees: less than 50 people.
- Turnover: less than GBP 10.2 million.
Companies that meet these criteria can still opt to have a statutory audit done. It can be requested by a company’s shareholders or provided for by its articles of association.
However, audits are a must for all companies involved in insurance or banking activities, electronic or otherwise. Businesses regulated by the Financial Conduct Authority (FCA) are legally required to submit statutory audits to ensure everything is above board.
Audits can be done internally or externally. An internal audit is done by a company’s accounts department and is an ongoing process. External audits are also known as statutory audits. They are independent assessments carried out by registered auditors engaged by the company’s shareholders. This type of audit is usually recommended as they are impartial, and objective of the company being audited. These tend to inspire more confidence and have fewer instances of bias.
A statutory auditor will require access to all financial statements, systems, and records such as payroll and wages as well as Value Added Tax (VAT) returns. Other information and documents include:
- All returns, year-end statements, information on creditors and debtors, etc.
- Stock issuance and reports, share ownership, etc.
- Minutes of all meetings held during the financial year
- Balance sheets, accruals, and invoices, etc.
- Fixed assets listing, hire purchase agreements, etc.
For reliable statutory auditing services in the UK, it is always best to work with reputable firms you can bank on. 3E Accounting has years of industry experience complemented by global resources and partnerships, allowing us to deliver only the best. Our affiliates include registered auditors who will ensure full compliance for your company. Contact 3E Accounting today and speak to our team on customising the best business solutions for your company.