Why bother with assurance?
Even if your company is soon to take advantage of audit exemption under the expected new criteria, it is important to remember that the underlying business needs still remain. There are many areas that either give cause for concern among management or warrant some level of assurance because it is required by a third party, such as a bank or other lender. The following are some of the areas to consider:
- Financial systems and controls – Are they doing what they are supposed to? Are they fit for purpose?
- Fraud – What are the risks? What preventative and detective controls can be implemented to mitigate the risk?
- Management accounts – How accurate and timely are they? Can internal reporting be improved to assist with decision-making?
- Covenants – Does the company meet its covenants? What level of assurance is required by the lender
- Regulatory compliance – Is the company required to complete a return to a regulator? If so, do management require some comfort on the reported figures?
- Specific accounts figures – Is there a certain area of concern in the accounts? Would some defined testing on this area allow management to conclude on its accuracy?
These are just a few reasons why a business might need or benefit from some form of assurance engagement as a simpler and less expensive alternative to a statutory audit. Auditors are ideally placed to meet these needs by providing objective and independent assurance that others cannot provide.
If your company wishes to take advantage of audit exemption, either now or in the future, please contact Matthew Grant, Director on email@example.com or 0113 273 9600 to discuss your assurance requirements.