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Business Auditing

World class accounting from award winning chartered accountants you can trust

Business audits are based on an analysis or evaluation of a company, in order to know the real, current business situation. The auditor is responsible for collecting all types of information to determine an opinion on this and the outcomes can be favourable or unfavourable.

After analysing all the data, the audit report is created, where all the most important data are collected. Large companies must conduct their own internal audits on a regular basis, but even smaller businesses should think about organising these kinds of auditing checks, so as to ensure everything is in order and to be prepared if HMRC ever wished to audit your company.

Audits are an in-depth examination of the company and serve to know the real business situation. In order to know the real situation of a company, different types of audits are carried out and consist of carrying out a thorough evaluation to determine the state of the business.

The decision making process is streamlined thanks to the results provided in the audit report, which are obtained after the analysis. The audits are classified according to the area of ​​study that is carried out – distinguished by accounting, operational or Human Resources audits. The responsible person in charge of auditing the business, highlighting the internal and external audits, is also taken into account.

Audits in companies lend credibility and convey confidence and are an essential element in the business management of large enterprises.

Frequently Asked Questions

The importance of an audit

On many occasions, companies do not sufficiently value the need and importance of conducting audits in business organisations. This is because auditing allows you to study what you are doing, to know if you are doing things well, if you are complying with legal regulations, if you are adapting to current affairs and new technologies and to direct and make decisions that allow us to have greater success. It is very important for the management of the company, to have reliable information that allows you to analyse and evaluate the steps to follow.

In addition, the control of our business management can help us avoid more than one headache in reference to legal aspects. Sometimes, we can be making mistakes that can be considered as fraud, which can lead to great penalties and fines. For example, if our accounts do not reflect the reality of the company, if our computers do not have the necessary licenses to be used, if our machinery does not comply with the regulations – we may have problems with the law.

What are the objectives of a business audit?

The objectives of an audit focus on knowing in detail all aspects that make up a company process. But, as we indicated above, you can also refer to specific aspects of the company to see how they are developing. The importance of the business audit is such that in some cases, it is mandatory.

Thus, the objectives of an audit can make reference among other issues to:

• Identify the current and exact situation of the company in a general way or in a specific aspect

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

• Discover frauds that the company may be knowingly, or unknowingly committing

• Take note of technical errors that are taking place

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

• Check if the work system of the company is being effective and efficient

• Collect as much information as possible that will allow us to make better decisions that will help improve the performance and productivity of the company

Should I be worried about business auditing?

Auditing takes place as a measure to ascertain 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 Norden’s, 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 in them and take measures to 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 knowing what things happen, what things are doing well and what things are being done wrong, how you can improve on any of those key points that are detected and plan a more appropriate strategy and translate it into the financial plan.

Should I set up an audit of my company?

Many companies do not pay attention to, or 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 up-to-date the status of its annual accounts and 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 good and bad. In this way, you can correct or stop what can generate problems in the future.

What company has to go through an audit process?

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 qualify as exempt for an audit, a company must be ‘small’, or have been passed as such in the last year and be serving that year’s grace.

In terms of identifying whether a company is financially small or not, two of the following criteria should be achieved:

• Turnover of under £10.2million

• Gross assets under £5.1 million

• Less than 50 employees

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

• The business cannot be joined to a group that doesn’t qualify as it includes businesses such as those above

Beyond Accountancy

At Nordens we're more than just accountants, we're business experts who can help you achieve the biggest goals.

Our specialist strategic division at Norden’s boasts some of the leading entrepreneurial business minds in the country. They cater towards delivering consistent success stories for businesses looking to achieve all their goals and more.

Through highly tailored guidance, coaching and advice, Norden’s Strategic are able to define exactly how your business can attain new levels of success.

Regardless of how you define ‘success’ for your business, our strategic service is guaranteed to bring about real and lasting change. By partnering with some of the UK’s top business coaches, we steer you along the path to greater future.

Every business, no matter how big or small, needs to make the right decisions. How to best manage your accounts can put huge question marks over your business. Accounting 2 You are here to take that away and provide all the answers you need.

Our bookkeeping branch offers a fully inclusive, comprehensive service that they can trust. Since 2005, our specialist bookkeepers have been successfully managing the accounting of individuals and small businesses.

With experts in payroll analysis, credit control and financial recording, Accounting 2 You will lead your business efficiently and with a real purpose to help you grow and prosper.

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Chris Dyer

Director - Metro Bank

Nordens are always very easy to deal with and extremely professional and efficient. I would have no hesitation in recommending them to my clients for their accountancy needs, no matter how complex they may be.

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Co-Founder - Chicmi Limited

Very good to work with - the team go above and beyond to make the accounts easy and efficient. They're all super friendly and a joy to work with.

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Director - Rose Opticians

I have been using Norden Chartered Accountants for 5 years and very happy with the service provided. All members of the team are very knowledgeable and have a wealth of experience which has proved very beneficial to my organisation

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Founder & Director - Physio LDN

Very easy to contact and put me in touch with the right person whenever I need to ask any questions. Extremely knowledgeable and can help me manage my various businesses whenever I need.

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Principal - Pauline Quirke Academy

Great accountants, always available to offer advice. The team have transformed my business.

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Christopher Wilce

Founder - Dataphone

Having worked with Nordens over the last 5 years, not only to look after my annual accounts but they have also provided outstanding professional advice. They have guided me through a Company share buyback with clear and objective advice. We have also been using Nordens strategic services for a couple of years, which has helped bring about significant improvements that exceeded my expectations. With experience of working with several local accountants over my 29 years in business, I’m very pleased with the service I have received from Nordens.

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Dave Hodges

Director - Linekers

Trusted our business with Nordens for over 10 years now and watched the company grow into the successful innovative business it has become today. Deservedly so. Every aspect of financial advice we need is always given promptly and with a smile. We have total confidence in all aspects of advice Nordens give. If you are looking for accountants, its a no brainer!

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Founder - Foundation Sports Limited

A fantastic, modern, vibrant firm that care about the clients and their staff in abundance. It is rare to find an Accountancy firm with such vibrance and focus and relationships. It is no wonder they win award after award in their field.

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Managing Director - Prime Time Boilers

I have been with Nordens for many years now and they are a great accountants.

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Founder - Vivid Finishes

We have used Nordens for the last 5 years and have had a great service throughout. The guys are very passionate about what they do and have played a part in the growth of our company, highly recommended.

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Andrew Martin

Managing Director - AMD Interior Architecture

Great Service at Nordens from a friendly very approachable team Particularly Kirsty Willis and Joe Sword who have been helping us since we started the business in 2016.

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Director - Forma London

Nordens provide a first class service. We moved to Nordens last year and have been impressed with the level of service provided. Keep up the good work!

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  Why I Founded Nordens

In November 2002, having sold our other business interests off earlier in the year, I decided to set up Nordens Chartered Accountants. The easy part was knowing how to do it, as I had established and built a smaller practice a few years earlier, the difficult part was not following the traditional accountancy path. Having run businesses, both successfully and unsuccessfully, I wanted to help business owners resolve their short term problems and work with them to achieve their longer term goals. Business has always been my interest and I love that I can help business owners achieve what seems like the impossible every single working day.

Mark Norden
Founder

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Our limited company accountants have a range of qualifications from The Institute Of Chartered Accountants (ICAEW) to the Association of Chartered Certified Accountants (ACCA). They follow the bye-laws, regulations and ethical guidelines of the ACCA and we are an ACCA accredited employer. We are also accredited by Professional Passport for our Umbrella and accountancy services.