February 17, 2021
A statutory audit is required when a UK Limited company
or a Limited Liability Partnership (LLP) meets two or more
of the following criteria:
- A turnover of greater than £10.2m
- Total assets of more than £5.1m
- More than 50 employees
Auditors report to the company’s shareholders (or
members) on whether the annual accounts show a ‘true
and fair view’ of the company’s financial activity and
position.
How does a company benefit from
being audited?
It can be beneficial to opt for an annual audit,
whether or not the above criteria have been met.
You may wish to do so for the following reasons:
- Shareholder reassurance
- Planning for sale
- Long term growth / investment plans
- Reduce the likelihood of fraud
- Gain insight into systems and process
improvements - To audit grant funding
