Audit

Although many small companies can now take advantage of an exemption to appoint auditors and to have their accounts audited, this does not apply to companies whose turnover or balance sheet total exceed certain limits or to certain types of company.  An audit can have considerable value as it is an independent review of systems and controls in the business and the business's accounts and this is true of all sizes of company.

Provided a company otherwise qualifies as "small" for a particular accounting period, which excludes, among other things, PLCs, listed companies, and subsidiaries of medium-sized or large groups, a company can claim exemption from audit.  This is assessed annually, so a company could be required to have an audit one year but not the next, or vice versa.  Currently, if a qualifying company's  turnover does not exceed £6.5m or its balance sheet total does not exceed £3.26m it does not require an audit. There are provisions which protect individual members so that, if they still want an audit and send an appropriate notice to the directors, the directors must get the accounts audited.

An auditor must be registered before accepting appointment to audit accounts. Since 1 July 2009 audits are the responsibility of Hale & Company's associated company, Craufurd Hale Audit Services Limited, which trades under the name Craufurd Hale.  Craufurd Hale is a registered auditor.

For accounting periods beginning on or after 6 April 2008, audit reports must be signed in the name of an individual "Senior Statutory Auditor" as well as disclosing the name of the firm.