Managing the diverse demands of your business can be quite a juggling act. One day, you’re deeply engaged in strategic planning; the next, you’re immersed in budgeting and forecasting.
Amidst these challenges, the idea of a statutory audit might not spark the same excitement as launching a new product or crafting a compelling marketing campaign.
However, beyond ensuring regulatory compliance, a statutory audit plays a crucial role in maintaining your business’s honesty, transparency, and reputation.
Statutory audits – what are they?
To put it simply, a statutory audit is an independent review of your company’s financial statements.
Needing a statutory audit is nothing to be worried about – its main aim is to ensure that your financial records accurately reflect your financial position.
Richard Carr, Client Portfolio Manager, Knights Lowe says: “Statutory audits are essential for ensuring corporate governance standards are met, providing stakeholders with assurance that the company is managed responsibly and transparently.”
For larger businesses in the UK, if you meet the following criteria a statutory audit is required:
- Have an annual turnover above £10.2 million
- Possess assets worth more than £5.1 million
- Employ more than 50 people
Why should you conduct a statutory audit?
An audit can be a valuable opportunity to gain insight into your business’s processes which will enhance your credibility.
Your stakeholders want to see a clear view of your business’s financial health and to feel assured they can trust you.
When a professional auditor certifies your financial statements, it builds confidence among shareholders, investors, employees, and potential business partners.
Audits also help to identify any financial discrepancies or fraudulent activity.
Richard emphasises that “Early detection of issues through audits can prevent larger problems down the road, safeguarding both finances and reputation.”
When you have a reliable audit, you get a good handle on where your company stands financially. It helps you make smarter business decisions because you have a clear picture of your financial situation and when it comes to long-term planning, these insights are absolutely essential.
The audit can also outline any areas in which your financial processes could be improved by further efficiency and control measures. For instance, you might discover that streamlining your invoice processing system could significantly reduce turnaround times and costs.
Final thoughts
Statutory audits don’t have to be seen as an antagonist in your business’s journey to success, in fact, they’re actually a friend acting as a catalyst for improvements to enhance your company.
Richard says. “Beyond regulatory compliance, audits serve as a strategic initiative to strengthen internal controls, mitigate risks, and uphold the integrity of financial reporting.”
Our comprehensive audit service meets the demands of compliance, but our experts go the extra mile and will also recommend practical solutions and improvements to help your business run more efficiently and improve profitability.
Contact our team today to find out how our auditing services can support your business.
