A4G Audit Limited are registered as auditors with the Institute of Chartered Accountants in England and Wales. These days, most owner-managers have an exemption from completing a statutory audit due to their size. Others may have one carried out because it is a requirement of their regulatory body.
Many companies choose to continue with an audit even if not legally required to do so because of the reassurance they get from having someone independent report on their accounts and the systems that produce those figures. This becomes particularly important as a business expands and the owner-managers are not involved in the detail of everything that the business does.
There are several purposes of the audit but they include reviewing the suitability and reliability of financial systems, analysing the data in more detail than a simple accounts preparation exercise would do and to potentially reduce the risk of fraud being carried out. One area of an audit that is becoming increasingly important is the assessment that is done to ensure that the business should be able to continue operations for the foreseeable future, the so-called Going concern review.
We are able to provide the following audit services:
Your Company will need an audit if it (or the group of companies that it is part of), exceeds the small company threshold. To qualify it will need to have exceeded two of these three conditions:
- £6.5million turnover (For accounting periods starting on or after 1 January 2016 the threshold has increased to £10.2m)
- £3.26million gross assets (For accounting periods starting on or after 1 January 2016 the threshold has increased to £5.1m)
- 50 staff members (No change and remains at 50 staff members)
There are other regulations that may enforce an audit such as your industry’s regulatory body. This can be quite a complicated area and if in doubt we suggest speaking to Matt Finch or Malcolm Palmer.
We often tell our clients “you have got to have a system” which is especially true if you are seeking to grow the business, maintain quality, and make the business less dependent on a handful of key staff or owners.
Obviously it would be nice to not to have to police the system and trust your staff, but in any organisation there are often mavericks that cut corners, reduce quality and potentially cause significant problems.
Many of our clients use our services to highlight bad practice which as well as identifying problems can often simply act as a deterrent in the first place. An internal audit can be tailored specifically for you and can include whatever you feel needs to be looked at including
- Review your systems to see if there are improvements to efficiency that can be made
- Review of overheads to see where savings might be achieved
- Review of working practices to reduce the risk of fraud
- Review of processes to ensure staff are following the correct systems
Stock take reviews
Stock and work in progress can be the most subjective figure in a set of accounts and therefore is one of the areas that HM Revenue & Customs often enquire into. If not correct, it can also result in misleading profit and loss accounts being supplied to management and incorrect strategic decisions being made as a result.
As part of our review we make sure your stocktakes consider all the key valuation aspects and therefore give a fair valuation that would support management accounts and any tax enquiry. We also attend stocktakes to make sure they are going as planned and nothing gets double counted or missed.
This is becoming increasingly popular for clients who want to be sure that the business is operating the way they want it to and therefore they do not need to be in the business looking over their shoulders of their staff.
The benefits of this service typically outweigh the cost. Some areas we typically are asked to look at are:
- Sales being under recorded
- Customer debts being high
- Opportunity or known instances of fraud
- Review into staff expense claims
- Overpayment of staff wages
When buying or selling a business, before the due diligence process takes place we sit down with our clients to assess their concerns and the tax implications and the different options available to them.
Due diligence work then focusses on the areas that you perceive to be high risk and we work closely with you reporting back our findings as we go. Any kind of mergers and acquisition is extremely time-sensitive and issues need to be resolved immediately.
Once the due diligence process is complete our audit team will pass the result to your principal adviser who will discuss with you the areas which may lead to price negotiations or other considerations.
Specialist assignment audits:
Pension scheme audits
Pension scheme audits are another specialist area and for trustees it is often hard to find an auditor offering value for money. As a specialist team operating out of one office we still have many years of expertise in the industry but are still able to offer highly competitive quotes. As trustees it is your responsibility to ensure that the scheme is properly managed on behalf of the members and you probably want to use trusted advisers who are accustomed to the industry.
We deal with both defined benefit and defined contribution schemes of all sizes and often find that the trustees want the scheme to be audited by someone who is totally independent from the main company’s auditors. We can also produce accounts in recognised statutory formats and many of our clients use both these services.
We deal with a lot of clubs such as golf, football and rugby clubs where emotions can often run high! As a result, many clubs recognise that an independent audit brings objectivity as well ensuring accounts are accurate and that staff are following the correct procedures.
Whilst a club could opt to have a fully statutory audit, we often find that best value is obtained from what we call an “assurance audit” This is because we can focus on the areas that you see as high risk and ensure that they are running as planned. Another area that we help with is internal audit of your systems, and a review of things like the segregation of duties.
Client money audits
Client money audits are not just part of our work they are required by a number of other industry and regulatory bodies as well. Such audits help to make sure that your clients view you as a safe place to keep their money.
Various regulatory bodies require you to complete an audit each year to satisfy the terms of being a member. One such example is an ARLA audit which is specifically related to members who deal with residential landlords. The main focus of this audit is to ensure that the client money being held is used appropriately.
To find out more about A4G Audit or to book an audit today contact Matt Finch on 01474 853856.