Appointment of Auditors - Company Formation - UK Registration Services
Auditors are usually tasked with providing an independent report on the company's affairs to its shareholders. The concept is based around "true and fair" that is, that the accounts show a reasonable picture of the company's financial performance and position.
The thresholds for company audit exemption have risen recently and therefore enabled more companies to fall out of the audit requirement banding.
Companies can still have an audit if they choose. Audits may be of particular use where the owners of the business are not involved in the day to day running and management of the business. The audit may therefore provide some assurances as to the good stewardship of the directors in running the company.
Owner managed businesses where the roles of owner and director are the same people would not see the benefits above and therefore may take advantage of the potential cost savings available from simply having accounts prepared.
