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Auditing - Business
Auditing is an element of financial management to be understood rather than feared. The phrase 'the auditors are in' has come to be viewed with trepidation. Armed with the right guidance and advice, auditing needn't be seen as a huge obstacle.
Ritsons can provide full information on the subject, including for instance, auditing exemption. In plain language, this applies at a certain level of turnover and most companies are exempt from a statutory audit.
As a matter of interest, the exemption threshold was raised from £1 million to £5.6 million for accounting periods ending after 30 March 2004.
And since the legal definition of small and medium-sized companies was changed in recent times, more companies are now able to prepare accounts with fewer disclosures than for 'larger' companies
We know that it's commonplace for audits to be seen as the 'cost' companies pay for having limited liability. However, audits act as a source of reassurance to shareholders, lenders and creditors that annual accounts are reliable. Companies House for instance, has confirmed that 93% of the complaints it receives are about the credibility of filed accounts from audit-exempt companies.
As you can imagine, there are a variety of details to contend with in auditing. Ritsons won't let you become tangled in the small print.