Financial Audit Services for UK Companies – Adams Moore Audit

In addition to its range accountancy services shaped specifically for sizeable businesses, Adams Moore operates a distinct regulated audit company in the Birmingham and Staffordshire areas that can undertake independent audit work. Our audit management services include statutory and specialist audits, each tailored to an individual company’s needs with comprehensive reports provided upon completion. Specialist work that Adams Moore Audit has completed includes assessments for Solicitors, to inspect that their clients’ accounts are being operated correctly, and for businesses and not-for-profits that were asked to provide an independent assurance report to verify where funding had been spent.

What is a Statutory Audit?

There is not much difference between two businesses’ financial statements, if one has been audited and one has not. However, the audited firm is illustrating that an unprejudiced check has been carried out, which provides a better assurance that there are no mistakes or misstatements in the company financials. While the audit declares the company’s books to be fair and true, but it does not guarantee its total precision; the final report is the auditors’ opinion and it is important to remember that it does not take any responsibility away from the company directors, with regards to the presentation, fraud or error of the financial statements.

We will:

> Form an opinion on whether the financial statements have been prepared within a valid financial reporting framework

> Act with professional skepticism, acknowledging the prospect irregularities, fraud or error within the material facts

We will not:

> Verify the achievements or inefficiencies conducted the affairs of the entity

> Pass judgement on the future viability or success of the company being audited

We may:

> Provide opinions on other specifics, for example, the reliability of financial management reports or internal controls

> Include any views that are relevant to being able to form an opinion on the company’s financial statements


Which Companies Require a Financial Audit?

There are a number of particulars which can make a business exempt from requiring an audit of their annual accounts; if any of these principal thresholds are not exceeded or criteria met, then your company is likely to not need a financial audit. However, this is not exhaustive guidance on the matter and discussions should be held with your accountant:

> Sales do not exceed £10.2 million

> Sales did not exceed £10.2 million in the previous year (allowing one year’s grace on an audit)

> Net assets do not exceed £5.1 million

> The number of employees does not exceed 50

> It is a subsidiary company with a guarantee and financial statement created by the EEA parent firm (if the company is part of a group, the whole group must meet the conditions to be in ineligible for an audit)

> It is a non-profit subject to a public sector audit

The majority of UK companies are therefore outside the scope of needing audit services from a specialist like Adams Moore, but it is worth noting that members with 10% of a class of shares can request an audit to be undertaken, even if other reasons as listed above relieve it from the obligation.


Objectives of a Statutory Financial Auditor

Adams Moore Audit will operate entirely independent and impartial when completing a specialist or statutory company audit of financial statements. The Financial Reporting Council (FRC), which regulates auditors, accountants and actuaries, and sets the UK’s Corporate Governance and Stewardship Codes, has outlined the principle objectives of an auditor, which we fully support.

We aim to:

> “obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error”;

> “report on the financial statements, and communicate as required by the ISAs (UK), in accordance with the auditor’s findings”

Should reasonable assurance not be able to be obtained, the ISAs (UK) require us to:

> “disclaim an opinion or withdraw from the engagement, where withdrawal is possible under applicable law or regulation”.


How your Company Audit will be Undertaken?

Adams Moore Audit will visit your company’s head office or the premises in which your in-house financial team is located and we work alongside them, causing the least disruption as possible. When conducting previous statutory audits, a meeting room has often been made available for the entire duration of the process so there is no effect on the day-to-day running of the business. It is also helpful if one individual who is responsible for the company’s books can be called upon to answer questions and provide information to the auditors as required. Once appointed we will require access to the company’s books, accounts and vouchers at all times; we will then be able to collate and process the evidence needed in order to declare the financial statements meet legislation, accounting standards and that they are free of material misstatement.


How to Prepare for an Audit?

While it is crucial that finance employees are made available during the auditing period, preparing a number of things in advance can help to ensure that they are not disturbed excessively.

> Principle accounting records

> VAT details and returns

> All bank account reconciliation and statements for the entire period the audit focusses

> Balance sheets

> Salary records and P11D returns

> Invoices evidencing fixed assets, prepayments and accruals, to name but three examples

> Company/group structure & ownership schema

> Creditors and debtors details

> Hire purchase and leasing agreements

> Stocktake reports

> Share ownership changes

> Copies of all financial meeting minutes


If your accounts currently need to be audited or you require a tax planning service to help you make the most efficient return possible, please get in touch on 01827 54944. We will be happy to assess and advise you accordingly.