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We are registered auditors and we and are authorised by the Institute
of Chartered Accountants to carry out audit work under the Companies
Act 1985.
• Why an audit?
The idea for a limited liability company was invented in the 19
th century as a basis for fostering trade. The word 'limited' remains
as a reference to this liability today. The essence of the idea
was to limit the exposure a trader's other assets to any unpaid
debts of his business. In order for this to be fair to the people
trading with the 'limited liability company', it was felt appropriate
that the accounts of the company should be reviewed or 'audited'
by an independent expert and that his report together with accounts
should be filed at a registry which would be accessible to all.
In this way traders wishing to do business with the company simply
had to refer to the registry in order to get a financial health
check on their trading partner, thereby minimizing their risk and
fostering more trade. At a stroke Companies House was established
and the profession of auditor came into existence!
• Modern auditing
Auditing today involves a combination of skills relating to the
systems, the assets and the liabilities of entities. The commonest
form of auditing is probably the audit of company accounts under
the Companies Act 1985. The auditor makes his report to the members
or shareholders of the company who are the owners of that company
but is paid from company funds. The members hire Directors to run
the company for them and their Board has executive power day to
day. Mostly, in small companies, the Directors are also the members - so
they wear two hats. It is essential that the auditor is independent
of the company in order to express his opinion without favouring
any particular party either within or outside the company. A loss
of independence will lead to the resignation of an auditor.
In addition to regulated auditing companies may require audit
services for various other activities undertaken. All of the areas
listed below and many more require the auditor to be qualified
under the Companies Act 1985 criteria:
• Grant applications under European funding
• Solicitors' Accounts Rules
• Accounts prepared for the members of The Royal Institute
of Chartered Surveyors
• Accounts for entities registered under the Financial
Services Act
• Local Authority grants
• Accounts of the members of the Association of British
Travel Agents (ABTA)
• Charity Accounts
• Audit threshold
The Companies Act 1985 requires medium sized and large companies
to have their accounts audited by suitably qualified individuals.
An audit involves the verification and valuation of company assets
and the testing of the accuracy of the accounting records. After
completing the audit, an auditor must determine whether the financial
statements give 'a true and fair view' of the entity's financial
position.
• Our service
We offer a comprehensive auditing service to our clients, incorporating
all the above areas. This service is delivered locally using local
qualified staff. We are a training office for young aspirant Chartered
Accountants and draw upon the talent available locally for our
staff. We undertake continuing professional development to ensure
our knowledge is up to date and relevant. We apply our skills in
a cost efficient way in order to reduce as far a possible the amount
of time spent on assignments. Please contact us for a fixed fee
quotation.
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