Audit trigger points
The company is close to breaching the audit threshold. Ideally the Audit team want to be involved when the company is expected to breach the thresholds in the first year to ensure that sufficient consideration has been given to opening balances, including consideration as to whether an accounting policy review is required.
New monetary size threshold. The table below sets out the new size thresholds that will be met for a financial year if any two of the three criteria are met.
*ie, total assets
Looking for external funding – lenders often require audited accounts.
If a company is part of large group, i.e. global group.
Potential acquisitions which could give rise to the requirement to be audited.
If clients are unhappy with services that they are receiving from their existing advisers.
Exit planning – if existing owners are looking to exit it may be beneficial to consider an audit ahead of going through any due diligence.