When do accounts have to be audited

At LDB, we are experienced in providing audit advice to a broad range of clients, from public companies to large and small private companies and not-for-profits. To find out more about how we can help your business with an audit, call on 03 or fill in the contact form below. March 27, Here are some examples of when an audit may be required: As a regulatory requirement Certain types of entities must have their financial reports audited by a registered auditor.

To obtain a grant or investment If companies or charities are seeking a government grant, they may have to undertake an audit. Does my company need an audit? There are a few reasons why your company could need an audit: You have outgrown the statutory audit exemptions see below. New investors have included an audit requirement in the funding agreement. You might just value the objective independent insight into your accounts and financial processes that an audit will provide.

Unincorporated sole traders and partnerships are exempt whatever their size When does my company need an audit? Are there any other benefits to an audit? Contact us today. The auditor is typically responsible for: Examining financial statements and related data Analyzing business operations and processes Evaluating company assets for impairment and proper valuation Determining tax liability Ensuring compliance with tax code and laws What are the reasons for an audit?

Consider the following types of businesses and the factors that necessitate independent audits: Venture-backed: While not all venture investors require audits, many do. They may want full disclosure of your financial statements conducted by an expert third party. Bank-affiliated: Not every bank will mandate an audit of your business financials. However, there are many of a certain size that do require them. Seller: Any company planning to sell the business would be wise to arrange for an audit.

Virtually all prospective buyers will require one, as they want to ensure your reported results conform to GAAP. Two to three years of audited financial statements may help to increase the sale price. How soon should you think about an audit? What should you do to be audit-ready? To ensure your business is audit-ready, follow these essential steps: Implement a rigorous close process every month. This will help ensure that all transactions, journal entries and financial statements are recorded accurately and in a timely fashion.