The independent assessment of a company or institution’s financial accounts is known as a statutory audit. The professional who performs the assessment is called an auditor. His or her role is to understand whether the financial statements of the organization meet relevant guidelines, legal requirements, are “true and fair” or not. The procedure of conducting a statutory audit allows the companies to save themselves from any risk and plan for the future in a more organized manner.

Very recently, the whole auditing sector has been under a strict inspection because the government ordered the collapse of high-profile firms and their audits were being questioned. That is why is it crucial for any auditor to recognize and then report in case they find any discrepancy and issues in the auditing process. This would allow the companies to work on their problem areas better. At Focus Somar, we aim to provide timely audits that are not just effective but meet the statutory obligations as well.

Requirements For Conducting A Statutory Audit

It is appropriate to say that not all organizations need to have a statutory audit. The small companies are typically exempted from such (in case they are not charities that follow specific guidelines) or are part of a larger group of people. If you are a small company and want to understand if conducting an audit is necessary or not, you need to check and meet specific requirements. To be exempted, you must at least tick two of the three below-mentioned criteria for at least two consecutive years:

  • Not more than £ 10.2M turnover
  • Not more than £ 5.1M total in the balance sheet
  • Not more than 50 employees in an average

Nonetheless, an important part to note here is that, even if your company meets the above-outlined criteria, you might need to conduct a statutory audit. An example of one such scenario is your grant provider, shareholder, or lender requesting for one.

There are various additional exemptions as well. At Focus Somar, we provide expert and comprehensive guidance about the eligibility and exemption of statutory audit as per Companies Act and other regulations.

What Kind Of Companies Require a Statutory Audit?

Irrespective of the size, specific companies require a statutory audit to improve efficiency and transparency. Such companies include:

  • Investment firms
  • Bank
  • Insurance companies
  • Public companies
  • Brokerage firms

What Is The Procedure Of Statutory Audit?

At Focus Somar, our accountants work hard to provide an exceptional auditing service by developing a deep understanding of the businesses. Our aim of our company is to have a minimum impact on the day-to-day business and maintaining an approach that would include the following:

  • Inspection of documents
  • Re-performing calculations
  • Physical verifications of staffs, office, assets and stocks
  • Sending various questionnaire and direct confirmation
  • Reviewing and reporting on controls and systems
  • Meetings, discussion and query settlement

What Is Focus Somar All About?

As a leading accountant in London, we have spent years dealing with both statutory and non-statutory audits. Should you want to speak to our experts regarding in-depth advice, get in touch with us.

The Focus Somar Audit and Tax Accountants Limited is a company registered to perform auditing in the United Kingdom by the Association of Chartered Certified Accountants, UK (ACCA). To find out more details about our audit registration, you can visit www.auditregister.org.uk and search for reference number 4592430.