If your business checks two or more of the following criteria, then it is a legal requirement, and your company must be audited:

Turnover in excess of £10.2m

Assets over £5.1m

More than 50 employees

However, whilst it is a requirement for businesses of this scale to be audited, it’s not the case that only companies that have to be audited should consider getting an audit done.

What are the benefits of auditing a business?

Audits Help to Build Trust

The first benefit of having your business audited is that it will make it easier to obtain increased credit limits, bank loans or other sources of external finance because you gain confidence from potential shareholders, banks and customers due to your company being more financially secure. Audits provide a level of assurance to external players that guarantee the quality of a company.

Auditors Provide Assistance Detecting Weaknesses

It’s also the case that when a firm is audited you get outside assistance in detecting any weaknesses in internal controls. This is something that is much less likely to be detected without having an external eye overlooking your processes and can provide useful recommendations for improving any deficiencies identified.

Support Detecting Fraud

Lastly, being audited means there is a much higher likelihood of uncovering instances of fraud or error within financial statements which may otherwise go unnoticed. This could significantly pay off further down the road as errors can be incredibly costly for your business and lead to a lot of administrative hassle that will negatively impact your business.

If you need assistance with auditing or any other accounting services, contact us today at 01992 642024.