UK Guide to Auditors
Auditors are trained accountants who inspect a company’s accounting records and procedures. Auditors provide a number of specialist services, including:
• Assessing the company’s financial and operating controls.
• Verifying financial information and examining accounts.
• Analysing risk and identifying fraud.
• Advising business directors on future improvement.
As a business, you can be required by law to conduct an audit, which will show whether your records for the year contain an accurate picture of profit and loss. This type of external audit will focus on financial reporting.
You may also wish to invest in a voluntary ‘internal’ audit, which will provide a full and independent evaluation of your business’s performance, highlighting any areas you need to address. A set of audited accounts can be a useful resource when dealing with your bank, or when undertaking other financial negotiations such as proposed takeovers or buy-outs.
Do you need the services of a qualified auditor?
In the UK, companies do need to carry out an annual audit if:
* the annual turnover is above £5.6 million,
* total assets of the company exceed £2.8 million,
* an audit is required by one or more regulatory bodies e.g. Financial Services Authority or ABTA,
* there are shareholders owning 10% or more of the issued share capital requesting an audit. They may do so by depositing a notice in writing at the registered office not later than one month before the end of the financial year.
Please take a look at our featured list of auditors in the UK: