Business Audits

We provide financial business audits to companies across the UK. Contact our audit team of experts today for more details on our services.

The word ‘audit’ is often accompanied by a sense of dread. At Seagrave French we unravel both the mystique and fear around audits. Firstly, we establish whether you need to have one. If you don’t, that’s an immediate saving. However, there are plusses to being audited – even if you aren’t required to by law.

Audits involve a detailed review of a company’s accounting and control systems. It requires a detailed understanding of the company’s business to execute efficiently.

Some companies are legally required to have an audit: PLCs, banking, insurance and finance companies. Professional and trade organisation often require their members to be audited.

Small companies (determined by meeting two or three of the following criteria: Turnover less than £10.2M, balance sheet below £5.1M and less than 50 employees) are not required to have an audit.

However, there are often good reasons for having audits even if you aren’t required to. An unqualified audit report can improve the status of the accounts in the eyes of banks and lenders, HMRC and suppliers seeking credit references. A history of accounts with clean audit reports can be a big plus if you consider selling the business. The possibility of fraud is also reduced.  

External and internal audits are carried out to check financial records and ensure their accuracy. External and internal audit are the most important functions of a company for ensuring quality management, controlling processes, and securing assets. External and internal audits are clearly different and provide different levels of assurance. External and Internal audits are performed to ensure that an organization is in compliance with a variety of regulations, including financial reporting standards and state excise tax audit requirements. External and internal audits is an important factor of a financially healthy organization.

Seagrave French delivers both audit & external audit advice and hassle-free audits.

Most subsidiary companies are also exempt from audits where their parent company guarantees their liabilities.

For accounting periods ending on or before 30 September 2012, an audit is required where your turnover exceeds £6.5 million or your gross assets exceed £3.26 million or the company is part of a group that exceeds those limits.

We can advise you if you need audits and if not, you can save on accountancy fees!

However, we aim to deliver hassle-free audits and there are good reasons for having an audit even if you are not required by law to have one…

  • Audits involve a detailed review of the company’s accounting systems and systems of control and also requires a detailed understanding of the company’s business. Such a review and knowledge can provide increased opportunities to provide proactive business advice on many matters

  • An unqualified audit report can improve the status of the 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 also be a factor if you ever wish to sell the company or, perhaps, take it to the market

  • The possibility of fraud can be reduced and an audit can act as a deterrent to any potential fraudster

Do you know why you need an audit or why you should have one?

The main reasons why you will be required by law to have a statutory audit are…

  1. You are a PLC or a banking, insurance or finance company (or a subsidiary of one of these)
  2. You are required by your professional or trade organisation to have your accounts audited
  3. Your shareholders do not agree to opt out of the audit

For accounting periods starting on or after 1 January, 2016 audit thresholds are aligned with the new qualification as a small company, meaning companies (including LLP’s) are exempt from having a statutory audit if they meet 2 of the 3 following conditions…

  • Turnover below £10.2 million

  • Balance sheet total below £5.1 million

  • Less than 50 employees

For accounting periods starting before 1 January 2016 and ending on or after 1 October 2012 small companies, meaning companies (including LLP’s) are exempt from having a statutory audit if they meet 2 of the 3 following conditions…

  • Turnover below £6.5 million

  • Balance sheet total below £3.26 million

  • Less than 50 employees

      Audit FAQs

      What is an Internal Audit?

      Internal audit refers to the department located within a business that monitors the efficacy of its processes and controls. The internal audit function is especially necessary in larger organizations with high levels of process complexity, where it is easier for process failures and control breaches to occur. Internal audit is an independent assessment of the quality, effectiveness, and efficiency of a company’s management controls. An organization’s operations can be enhanced and added value through the impartial, unbiased assurance and consultation process of internal audit.

      What is an External Audit?

      An external audit is an examination that is conducted by an independent accountant. This type of audit is most commonly intended to result in a certification of the financial statements of an entity. This certification is required by certain investors and lenders, and for all publicly-held businesses. 

      External auditing is a financial audit that is performed by a professional auditor from outside of an organization, as opposed to internal audit, which is performed by an employee who has access to the same information or documents as any other employee.

      Pros of internal auditing

      When supported by well-organized data and skilled auditors, internal audits can bring specific advantages to an organization.

      • Enhance decision-making: Internal audits can define specific problems and give decision-makers data to help inform their strategies and assess solutions. A business can improve its future decisions with the guidance of its internal audit.

      • Improve operations and efficiency: Internal audits can identify operational problems and inefficiencies. Because audits look at specific areas in-depth, they provide insights into the source of the issue. After the company makes changes, they can run another internal audit to see if the new practices and procedures have delivered the desired results. Internal audits help management in evaluating the efficacy of operational controls, corporate goals, and processes.

      • Define and mitigate risks: Internal audits can look at the consequences of potential events and the odds that such an event will take place. Once decision-makers are aware of the risk, they can take steps to mitigate it, lower the odds of it taking place, and reduce the potential consequences. The purpose of internal audit is to locate, evaluate, and manage risks within a business or organization.

      • Ensure compliance and success in external audits: Internal audits can mimic the process of external audits and find issues with reporting or compliance. By finding these problems and making corrections, a company can avoid potential penalties or punishments.

      Pros of external auditing

      When a company is required to have an external audit, it can enjoy certain advantages.

      • Improved transparency: An outside auditor gives a company a chance to prove their finances are in order and their statements are accurate. This extra proof is necessary for shareholders, but lenders and people who want to support honest, transparent businesses will also appreciate it.

      • Stronger internal controls: A business can establish strong internal policies and practices to ensure a positive outcome of an external audit. These policies can also help with accounting, record-keeping and overall efficiency within the company.

      • Increased credibility: Whether public or private, a company can increase its credibility by letting a third party examine its financial records. The audit can show that the firm is operating honestly and not trying to manipulate its finances or engage in any unscrupulous practices.

      What is an Audit Report?

      An audit report is a written opinion of an auditor regarding an entity’s financial statements. The report is written in a standard format, as mandated by generally accepted auditing standards (GAAS). GAAS requires or allows certain variations in the report, depending upon the circumstances of the audit work in which the auditor engages. The different types of audit reports are noted below.

      What are Financial Statements

      A financial statement is a report that shows the financial activities and performance of a business. It is used by lenders and investors to check a business’s financial health and earnings potential.

      Find All Your Auditing Services at Seagrave French

      The benefits of having access to auditing services from a Certified Chartered Accountant cannot be overstated. Today, more businesses of all types (sole traders, Partnerships, Private limited companies, Public limited companies, Non-Profit organisations, and Cooperatives) are reaching out and connecting with fully outsourced financial teams to provide support. If you are interested in utilizing our auditing services yourself, check out Seagrave French.

      Let your business outpace expectations with our range of services including Accounting Services, Audits, Bookkeeping, Business Support, Payroll Services, Tax Advisors and VAT Services—all designed to scale with your needs.

      Ready to meet the team? Reach out for a free consultation today.

      Services

      Services

      Accounting Services

      We offer a full range of accounting services, specialising in supporting owner-managed businesses to thrive.

      Business Support Services

      Our business support services will let you focus on the important stuff while we handle the paperwork.

      VAT Services

      Our dedicated team provide a full range of VAT services and are happy to offer VAT advice if you have any questions.

      Business Audits

      We provide financial business audits to companies across the UK. Contact our team of experts today for more details on our services

      Payroll Services

      Managing Payroll can be complicated, but with Seagrave French at your side, you’ll never need to worry about it. Contact us today to discuss our full range of Payroll Services.

      Business Bookkeeping

      If you’re spending too much time on bookkeeping and not enough time with your customers, we can help. Our team will handle all your business bookkeeping, leaving you free to manage other aspects of your business.

      Tax Advisors

      Seagrave French provides tax services to both business owners and private individuals. Let our tax advisors take the stress out of your tax return.

      Seagrave French Chartered Accountants

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