It has been over two years since the audit exemption thresholds were aligned to match those that determine company size in January 2016. It is estimated that around 10,000 limited companies fell out of audit in the UK as a result of this change.
Many small businesses welcomed the removal of the need for a compulsory audit and the savings in time and cost this brought. However the revised audit thresholds did make some substantial companies fall out of audit. The benefits of having an audit for these companies can outweigh the burden of having one and many have opted to continue with a voluntary audit. Reasons include the fact that an audit adds credibility to a set of accounts especially if shareholders are seeking to sell the company.
The auditing profession is becoming a highly specialised area with fewer companies requiring audits. With regulatory burdens that are placed on auditors increasing many smaller firms are also not finding it cost effective to offer auditing services and are not renewing their audit licence. Currently there are around 6,100 UK registered audit firms, down from 6,600 in 2014. This figure is widely expected to continue to fall further.
At SGD we pride ourselves in being audit specialists. Our audit team come from a variety of different backgrounds and bring to SGD a level of experience that is not seen in many local firms. Our audit clients vary from small companies wanting voluntary audits to rapidly expanding multi-million pound groups.
For clients falling out of audit, we can also offer tailored assurance services which can focus on particular areas of concern.
The world of audits has changed drastically over the last few years and with auditing increasingly becoming a specialist area it is important that your auditor is knowledgeable, experienced and someone who you can place your trust in.
At SGD we can offer all of this. For more information please contact Susan Walls or Sanjay Myangar.