An audit “includes examination on a test basis, of evidence relevant to the amounts and disclosures in the financial statements.”
The statutory limit for requiring an audit is a turnover of £5.6m. This of course means that even some quite large organisations do not need to be audited. However an audit might be required if it is stipulated in the organisation’s constitution or by the bankers or another third party.
The audit can be a useful tool for owners of the business who are not involved in its day-to-day running to ensure that the internal controls in the business are working and that no assets or funds are being misappropriated.
Various other bodies require an audit regardless of turnover. This is the case for Friendly & Provident Societies for example.
We are authorised by the Institute of Chartered Accountants in England & Wales to carry out audit work.
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