An audit is an independent examination of financial statements. It provides reasonable assurance, rather than a guarantee that every error or instance of fraud will be found. Preparing clear records helps your business and its appointed auditor work efficiently.
Does your company need an audit?
For financial years beginning on or after 6 April 2025, the small-company size tests generally consider turnover up to £15 million, assets up to £7.5 million and an average of up to 50 employees; at least two conditions must be met. Meeting those figures does not automatically establish an exemption. Group rules, excluded company types, shareholder requests and the articles can change the answer.
Check GOV.UK’s audit exemption guidance, including the rules for earlier periods. An external statutory audit, an internal control review and an HMRC compliance check serve different purposes.
Agree the timetable early
Confirm the scope, reporting deadline, information required and key contacts with your registered auditor. Tell them about changes in ownership, financing, systems or operations. Allow time for queries and adjustments before accounts are approved.
Prepare a clear evidence pack
- A reconciled trial balance and bank statements.
- Sales and purchase ledgers, with explanations of overdue balances.
- Stock counts, fixed asset records and loan agreements.
- Payroll records, tax calculations and director transactions.
- Budgets, cash flow forecasts and evidence supporting significant estimates.
Review controls and uncertainties
Check payment approvals, access permissions and reconciliations. Discuss going concern, significant judgements and events after the year end openly. Directors remain responsible for the accounts and records, even when advisers help prepare them.
Griffith Accountants can help organise your company accounts and supporting records and liaise with your appointed auditor. Statutory audit work must be undertaken by an appropriately registered auditor.
Book an introductory call to discuss your business.
Reviewed and updated: 24 October 2026.
