Answers to the questions we get asked most often about audits, our services, and how we work. If your question isn’t here, call us on 0161 832 4451 or get in touch.
Does my company need an audit?
Under the Companies Act 2006, your company needs a statutory audit if it exceeds two of these three thresholds: annual turnover above £15 million, balance sheet total above £7.5 million, or more than 50 employees. Group companies, regulated businesses and certain financial services firms can’t claim audit exemption regardless of size. If you’re not sure, we’ll check for free.
When does a charity need an audit?
Charities with gross income above £1 million must have a statutory audit. If income is between £250,000 and £1 million and gross assets exceed £3.26 million, an audit is also required. Below those thresholds, an independent examination may be sufficient. The Charity Commission sets these rules and your governing document may have its own requirements too.
What’s the difference between an audit and an independent examination?
An audit is a full examination of your financial statements under International Standards on Auditing (UK). The auditor tests transactions, verifies balances and issues a formal opinion on whether the accounts give a true and fair view. An independent examination is a lighter-touch review – the examiner checks whether anything looks materially misstated but doesn’t carry out the same depth of testing. Audits provide a higher level of assurance.
How much does an audit cost?
We quote fixed fees based on the size and complexity of your organisation. A straightforward company audit might start from around £5,000 plus VAT. Charity audits, pension scheme audits and SRA reports vary depending on the specifics. We always agree the fee before we start work – no hourly billing, no surprises.
How long does an audit take?
Most audits take between two and six weeks from starting fieldwork to issuing the signed report. Simpler entities are at the shorter end; larger or more complex organisations take longer. We agree a timetable at the planning stage and stick to it. The biggest factor in keeping things on track is how quickly your team provides the information we ask for.
What information will you need from us?
We’ll send you a detailed request list before fieldwork starts. At a minimum, we’ll need your trial balance, bank statements, nominal ledger, sales and purchase invoices for our sample, payroll records, and copies of any significant contracts or agreements. For charities, we’ll also need trustee minutes and details of restricted funds.
Can you audit my charity?
Yes. We audit charities of all types – CIOs, charitable companies, unincorporated charities and charitable trusts. Our team works with the Charities SORP (FRS 102) and understands the specific reporting requirements for the sector, including fund accounting, trustee expenses and related party disclosures.
Do you do SRA audits for solicitors?
Yes. If your law firm holds client money, you need an accountant’s report under the SRA Accounts Rules. We prepare these reports for sole practitioners through to multi-partner firms. We know what the Solicitors Regulation Authority expects and we aim to complete and submit within four weeks of receiving your records.
Can you audit our pension scheme?
We audit occupational pension schemes, both defined benefit and defined contribution. The Pensions Act 1995 requires schemes with 12 or more members to appoint an auditor. We work with scheme trustees and administrators and report in line with the Pensions Research Accountants Group guidelines.
What’s a voluntary audit?
A voluntary audit is a full audit carried out even though your company isn’t legally required to have one. Businesses choose voluntary audits for various reasons – investor requirements, bank lending conditions, preparing for growth, or simply wanting independent assurance over their financial reporting. The process is the same as a statutory audit.
Do you work with businesses outside Manchester?
Yes. We’re based in Manchester but we work with clients across the UK. Most of our fieldwork can be done remotely using cloud accounting software and secure file sharing. For year-end stock counts or other on-site work, we’ll travel to your premises.
Are you regulated?
We’re registered with the Institute of Chartered Accountants in England and Wales (ICAEW) for audit and assurance work. This means we’re subject to regular quality inspections and must comply with ICAEW’s ethical standards and technical requirements. Audit Group is part of Jack Ross Chartered Accountants, which has been practising since 1948.
Do you offer services besides audit?
Audit Group focuses on audit and assurance. For accounting, tax, payroll and advisory services, our parent company Jack Ross Chartered Accountants can help. Having both under one group means we can provide a joined-up service while maintaining the independence your audit requires.
How do I switch auditors?
Switching is straightforward. You’ll need to pass a resolution at your AGM or board meeting appointing us as auditors and notify your outgoing auditor. We handle the professional clearance process – writing to your previous auditor to confirm there are no reasons why we shouldn’t accept the appointment. The whole process usually takes two to three weeks.
What happens if you find problems during the audit?
We discuss any issues with you as we find them, not as a surprise at the end. Most problems can be resolved during the audit process – an adjustment to the accounts, additional disclosure, or a change to an accounting policy. If something can’t be resolved, we’ll explain the impact on the audit opinion and what your options are. Our approach is always practical: fix it if we can, explain it clearly if we can’t.
