Audit gives assurance that the accounts comply with company law and give a true and fair view to users.
Most small limited companies do not have to have their accounts audited. Any company which satisfies two out of the following three conditions will not be required to have its accounts audited:
- Turnover less than £10.2 million
- Gross assets less than £5.1 million
- Fewer than 50 employees.
There are exceptions to this exemption.
Many of our small company clients who are exempt prefer to have their accounts audited because of the added comfort an audit gives that the accounts comply with company law and give a true and fair view to users. Audited accounts also carry more weight with credit agencies and providers of finance.
Only accountancy firms which are registered can conduct audit work and their directors or partners must qualify as “Responsible Individuals” – “RIs”.
BTMR Limited is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales and all of our directors are RIs entitled to sign audit reports as “Senior statutory auditor”. Details about our audit registration can be viewed at www.auditregister.org.uk under reference number C003182058.
The Quality Assurance Department (“QAD”) of the Institute of Chartered Accountants in England and Wales conducts visits to selected audit firms on a regular basis. In addition BTMR employs an outside consultant to review a selection of our audits each year to advise on compliance with International Standards on Auditing (UK & Ireland) and to assess the adequacy of our audit procedures.