Voluntary and specialist audits explained
Audits are, for some companies, a necessity. For all companies, they’re an opportunity to learn about your business and accounting procedures. In this blog post, we’ll explore voluntary and specialist audits, their difference, their importance, and the insights they can offer to businesses.
Voluntary audits
An audit is a thorough check of a company’s financial records and processes to make sure they’re accurate and comply with all relevant rules. It’s done by experts called auditors, who review documents and transactions to give an independent opinion on the company’s financial health and compliance.
A company is required by law to arrange an audit when it has two of the following:
• more than £10.2 million in turnover
• assets in excess of £5.1 million
• more than 50 employees.
You will also need to arrange an audit if shareholders who own 10% or more of your business formally request one. You’ll also need one if your company’s article of association requires one.
A voluntary audit, on the other hand, is quite simply an audit that a company arranges even when they don’t need to. We’ll get onto why you might one to complete one a little later.
Specialist audits
Specialist audits are audits tailored to businesses in certain sectors where there are very specific risks and compliance needs to take care of. These audits ensure that businesses adhere to sectoral standards and regulations, providing assurance to stakeholders and mitigating risks associated with non-compliance.
For example, sectors such as healthcare, finance, and manufacturing often have stringent regulatory requirements that necessitate specialised audits. These audits can delve into industry-specific issues such as data security, financial controls, and operational efficiency, offering tailored solutions to mitigate risks and drive compliance.
Why you should arrange an audit?
Audits, whether they’re general or specialist in nature, are incredibly useful tools for a number of big reasons:
• Enhanced credibility: Audited financial statements tend to instil an extra level of confidence in stakeholders, fostering trust and credibility in the business’s operations and financial performance.
• Improved decision-making: By checking that financial information is accurate and reliable, audits enable businesses to make informed decisions and chart a course for future growth and expansion.
• Risk mitigation: Audits help businesses identify and mitigate financial risks, ensuring compliance with regulatory requirements and safeguarding against potential liabilities.• Operational efficiency: An audit can identify inefficiencies and areas for improvement, helping you streamline business processes, enhance operational efficiency, and optimise resource allocation.
• Stakeholder trust: Stakeholders, including investors, creditors and customers, appreciate a company that is committed to transparency and accountability. Audits are a sure way to demonstrate you’re committed to those values.
Looking for an auditor?
At RPGCC we are auditors, regulated by the ICAEW and authorised to carry out audit work for listed companies, PLC’s and PIES. Our audit team are dedicated to providing comprehensive financial oversight and compliance support to businesses of all shapes and sizes. Our expertise spans across various industries, including property investment, care homes, charities, wholesalers, hospitality, logistics and transport, nursing homes, retail and travel. If you’re not in one of those sectors, don’t worry – we’re can still help.
With our tailored approach and specialised knowledge, we can help you navigate complex financial challenges, ensure regulatory compliance, and optimise your business operations.
If you would like to speak to a member of our team regarding audit services, whether it is a voluntary or compulsory audit, we can help. Contact us on 020 7850 9070 or email us at hello@rpgcc.co.uk.
