Audit Service

The objectives of an audit focus on knowing in detail all aspects that make up a company process. But, as indicated above, you can also refer to specific aspects of the company to assess how they are developing.

Thus, the objectives of an audit include:

• Identifying the current and exact situation of the company

• Granting credibility and confidence to the company in front of possible investors or banking entities

• Discovering fraud that the company may be knowingly – or unknowingly – committing

• Taking note of technical errors that are taking place

• Reviewing the legality of all products and activities of the company

• Assessing if the Work System of the company is effective and efficient

• Collecting as much information as possible that will allow us to make better decisions that will improve the company’s performance and productivity

Auditing ascertains how accurate your accounting is, based on the findings of the auditors. If you keep your business accounts up-to-date – and use an accountant like Nordens – then there should not be anything to worry about. It is about comparing the aspects that make up the company with national or international laws, as well as with the internal rules of the company, to see the deviations that are taking place and correct them. Therefore, an audit will allow the company to take more control of itself, as well as help detect failures. Also, the audit will allow you to know the real state of the company in general to improve business management. In short, an audit is an examination and control of the economic situation of the company. It allows you to consider a more appropriate strategy to the one that might not be providing the results you expect, and translate it into a financial plan.

Many companies do not think about audits. They either think it will never happen to them, or do not give them enough importance as an internal practise. However, we believe that conducting an audit will allow you to analyse and assess the steps to follow in the growth and development of your business activity. In short, an audit is conducted to test whether a company complies with its obligations, has an up-to-date status of its annual accounts, and deduce how the company exploits its full potential in its daily exercise. How you analyse an audit will allow you to study what is being done in the company, both the good and the bad. In this way, you can correct or stop what can generate problems in the future.

Small companies, in general, are not required to perform audits. However, it may be necessary to perform an audit when there is evidence of excessive spending, customer complaints, non-compliance of projects, excessive rotation of human resources, or when the results are not what were expected. To be exempt from an audit, a company must be ‘small’, or have been passed as such in the last year and be serving that year’s grace.

To identify whether a company qualifies as small, two of the following criteria should be achieved:

• A turnover of under £10.2million

• Gross assets under £5.1 million

• Less than 50 employees

• The business mustn’t reach eligibility at any point of the year (this includes PLCs, banking and insurance companies, etc.)

• The business cannot be joined to a group of businesses that don’t qualify