Audits for companies and charities
Audits for companies and charities
We are authorised by the Institute of Chartered Accountants in England & Wales to carry out audits, and that authorisation comes with regular Quality Assurance visits to check our work meets its standards. Most of our audit work is full statutory audits of limited companies and charities. We also carry out independent examinations, the lighter review many charities can have instead of an audit.
Fewer local firms offer audits than used to. As the thresholds have gone up, many accountants have given up their audit authorisation, and newer practitioners may not have the experience needed to be granted it.
Does your company need an audit?
Most small private companies do not. A company counts as small, and can claim exemption from audit, if it stays within at least two of these three limits. For financial years starting on or after 6 April 2025 they are:
- turnover of no more than £15 million
- a balance sheet total of no more than £7.5 million
- an average of 50 employees or fewer
For earlier years the turnover and balance sheet limits were £10.2 million and £5.1 million. There is extra detail for groups and for companies that cross a limit for a single year, so it is worth checking with us if you are close.
Some companies need an audit whatever their size. That includes public companies, companies whose articles of association require one, some subsidiaries, and businesses in regulated areas such as banking and insurance. Shareholders holding at least 10% of the shares can also insist on an audit by asking in writing at least a month before the year end.
Choosing an audit when you do not have to
Plenty of companies below the limits still have one. A lender or investor may ask for audited accounts, and a buyer will put more weight on them during a sale. If you are not sure where you stand, send us your latest accounts and we will tell you.
Charities: audit or independent examination
Charities in England and Wales have their own limits, and they are rising for financial years ending on or after 30 September 2026. From then, a charity needs a full audit if its gross income is over £1.5 million, or if its income is over £500,000 and its gross assets are over £5 million. Below that, a charity with income over £40,000 needs an independent examination. Under the old rules the audit limit was £1 million of income and independent examination started at £25,000.
Charitable companies report to Companies House as well as the Charity Commission, so both sets of rules can apply. Tell us the charity's income and assets and we will confirm which you need.
How an audit with us works
Audit is the one part of our work where we cannot offer a fixed price, because doing so is considered to restrict an auditor's impartiality. Before we agree to take the work on, we give you an assessment of the cost.
- We meet to plan the audit, ideally before your year end, and agree the timetable and what we need from you.
- We send a checklist of the records to have ready, so nobody is chasing paperwork once the audit starts.
- We carry out the fieldwork at your premises or remotely, whichever suits you.
- We talk you through what we found, in plain English, before anything is signed.
- You receive the audit report. If we spot weaknesses in your records or controls along the way, we tell you.
If your company is below the audit limits, our annual accounting service covers the preparation and filing of your accounts.
We provide audit services from our offices in Midsomer Norton and Warminster, and our Bath accountants come to you, covering clients across Bath and North East Somerset, West Wiltshire and the surrounding area.
Based near Warminster? Our accountants in Warminster can handle this for you from our Market Place office.
We're here to help!
Feel free to get in touch with us any time.
An audit story
Well actually it is an independent examination story of a charitable company. We were approached to carry out an independent examination of the charity's accounts as the previous accountant was retiring. when we took over we found that the previous accounts presented to both Companies House and the Charities Commission were less than fully compliant. We discussed with the board and with the Chair specifically the additional reporting requirements needed. At first there was some reluctance to change but in light of the future plans for the charity it was agreed we should amend the accounts to be fully compliant. The charity has now adopted the fully compliant accounts and we have even assisted them in adopting new accounting software.
Frequently asked questions on Audits
What is a statutory audit?
An independent check of your annual accounts by a registered auditor, who then gives an opinion on whether they show a true and fair view. The law requires one for companies and charities above certain size limits, and lenders, investors and trustees rely on it.
What audit work does PG Owen do?
Statutory audits of limited companies and charities, voluntary audits for companies below the audit limits, and independent examinations of charity accounts.
Does my business need an audit, and if so, how often?
A private company needs an audit if it goes over at least two of the three small company limits: £15 million turnover, a £7.5 million balance sheet total and 50 employees, for financial years starting on or after 6 April 2025. It can also need one for other reasons, for example if shareholders holding 10% or more ask for it. An audit covers each year's accounts, so once you need one it happens every year.
What kinds of organisations do you audit?
Limited companies and charities, including charitable companies. If you are not sure whether we are the right fit, the first conversation is free.
How do you keep the audit from disrupting the business?
By planning it properly. We agree the timetable with you in advance, send a checklist so the records are ready before we start, and do as much of the work remotely as your records allow.
What should I prepare before an audit begins?
We will send you a checklist. It usually includes the trial balance, bank statements, sales and purchase records, payroll records, the fixed asset register, and copies of loans, leases and other key contracts.
How long does the audit process take?
It depends on the size of the organisation and how ready the records are, so we agree a timetable at the planning stage. We work back from your filing deadline: nine months after the year end for a private company's accounts at Companies House, and ten months for a charity's accounts at the Charity Commission.
How much does an audit cost?
We cannot offer a fixed price for audit work, because that is considered to restrict an auditor's impartiality. We will give you an assessment of the cost before we agree to take the work on, and the first conversation is free.
What is an independent examination?
A lighter review for charities below the audit limits with income over £40,000 (£25,000 for financial years ending before 30 September 2026). The examiner reviews the records and accounts and reports whether anything has come to their attention that should be raised, rather than giving the full opinion an audit does.
Can we have an audit if we do not legally need one?
Yes. A voluntary audit is carried out to the same standards as a statutory one. Companies often choose one when a lender, investor or buyer wants independently checked figures.