Does your business require an audit?

In January 2004, the Government issued a statutory instrument announcing that companies with a turnover of not more than £5.6 million per annum, and with gross assets of not more than £2.8 million, would no longer require a statutory audit. This measure, effective for the accounting period ended on or after 30 March 2004, was widely welcomed as a reduction in "red tape" and a cost saving for smaller companies.

There is no doubt the above is good news for the smaller companies, particularly those who viewed the annual audit as a necessary evil! But be warned, there are still a number of instances when an audit remains compulsory and indeed, many companies still find the audit process to be beneficial.

It should also be remembered that whether or not accounts are audited, the directors still have the responsibility to ensure that the accounts:

• Are prepared in accordance with standard accounting practice
  
• Are prepared in the format, and with the disclosures, required by The Companies Act
  
• Give a true and fair view.

Using fully computerised auditing techniques we aim to keep the cost of compliance down, so that we can devote our energies to the more important business issues. For more information on our full range of auditing and accounts preparation services, please contact Roy Coates on 01622 213709 or email roy.coates@dsh.co.uk.