Do you know why you need an audit or why you should have one?
Audit – not every company will require an audit but for Pomegranate Consulting it presents an excellent opportunity to completely understand your business.
Checking and verification are important, but an audit should be more than a compliance exercise. We will work alongside you and your business to identify and pre-empt any potential issues within the company, provide assurance of the figures within the financial statements, and perform a general health check of the systems and controls in place.
Our audit teams are partner-led and we adopt a personal hands-on approach to the relationship. Members of the team use their sector specific knowledge to bring value to the audit process.
You will be required by law to have a statutory audit if:
- You are a PLC or a banking, insurance or finance company (or a subsidiary of one of these)
- You are required by your professional or trade organisation to have your accounts audited
- Your shareholders do not agree to opting out of an audit
Companies (including LLPs) are exempt from having a statutory audit if they meet two of the three following conditions:
- Turnover below £6.5 million
- Balance sheet total below £3.26 million
- Fewer than 50 employees
Most subsidiary companies are also exempt from audit where their parent company guarantees their liabilities.
However there are good reasons for having an audit, even if it’s not required by law:
- An unqualified audit report can improve the status of your 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 be beneficial if you ever wish to sell your company or, perhaps, take it to the market
- Potential for fraud can be reduced and an audit can act as a deterrent to any potential fraudster