Following the most recent increase in the audit thresholds for periods beginning on or after 1st January 2016 we have now seen a 2,900% increase in the turnover threshold for audit exemption from £350k to £10.2m in the last twenty years since 1997. The result of this is that fewer small owner managed businesses are now required by law to have their financial statements audited.
At Jack Ross it is our opinion that far from representing a burden on business, our audit services provide valued benefits to our audit clients. We are proud that several of our clients choose to have a voluntary audit due to their recognition of these benefits, which include:
- Correcting any material reporting errors in the accounts before information is published and providing “peace of mind” to business owners that financial information is accurate.
- Provides assurance to 3rd party stakeholders such as lenders which assists in acquiring finance.
- Can assist in maximising the value of a business on sale by providing confidence to a potential acquirer.
- The audit will identify unexpected variations in the financials which can highlight rising costs which management can then concentrate on controlling.
- Controls and systems are reviewed as part of an audit and improvements will be suggested which can help reduce risk of fraud and error.
Even if a business does not wish to opt for a full statutory audit of the accounts then we can provide limited assurance services which can focus on key areas of a client’s business with agreed procedures targeted at identifying benefits for the business and providing comfort to the business owner.
Whether you opt for a full statutory audit or limited assurance you will receive a detailed written report presented at a face-to-face meeting and the assistance of our experienced audit team.
If you have any queries then please contact your account manager or our Audit Partner, Tor Stringfellow, on 0161 832 4451.