Since autumn 2012 the audit threshold exemption has changed and Small Companies no longer require a statutory audit.
It may be the case that a lender or other interested party still requires the year end accounts to be audited or indeed that you want an audit report attached to the financial statements to give more substance to the numbers in anticipation of a sale. Sometimes there is a need for an external process to help detect fraud or check the operation of company’s internal control procedures.
Whatever the reason this extra comfort might be needed, it is now more cost effective and less intrusive to have an assurance review instead of an audit. This ‘audit lite’ engagement is appropriate for directors and shareholders who want to make use of the audit exemption but would like an independent opinion on the accounts for added credibility.
Unlike a standalone accounts compilation, we would discuss your results with you in depth and compare the information in the accounts with other relevant information to see if it is consistent and makes sense. Areas that we have become aware of during our analysis that might indicate a high risk of misstatement in the financial statements are looked into in more detail. It is generally less extensive than the work involved in an audit, but has the advantage of flexibility.
This level of assurance provides the basis for a negative form of conclusion on unaudited financial statements. That is ‘…nothing has come to our attention to refute the directors’ confirmation that…the financial statements give a true and fair view…’.
If you feel that an assurance review may be more appropriate for your company than a voluntary audit report, or would simply like more information, please contact us to discuss your options.