Statutory audit support
Audit support
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Year-end
A statutory audit gives an opinion on a company’s annual financial statements. The company’s members or board appoint the statutory auditor, a practising Chartered Accountant (or firm of Chartered Accountants), who carries out the audit and signs the report under their own professional responsibility. TheTaxCo. is not a firm of Chartered Accountants and does not carry out or sign statutory audits. We prepare the books, schedules, reconciliations and audit-ready documentation, and help management answer the auditor’s queries.
Management remains responsible for the accounts, records, estimates and disclosures. The auditor’s responsibility is to obtain sufficient appropriate evidence and form the required opinion. Companies Act, sections 139–145.
What the audit examines
The audit considers whether the financial statements present a true and fair view under the applicable framework and addresses the additional matters required by company law. A small or low-activity company does not escape the statutory audit solely because it has few transactions.
The plan follows the company’s actual balances and risks. A stockholding business may need inventory evidence, ownership and cut-off testing. A service business may require detailed review of contract revenue, receivables and employee costs. Borrowings, related parties, estimates and events after year-end can affect both recognition and disclosure.
Audit aims for reasonable assurance about material misstatement. It cannot guarantee that every error or fraud will be detected.
Additional reporting is assessed separately
CARO 2020 requires additional reporting for companies within its scope and applies from FY 2021–22. Company-class exemptions must be checked before treating it as applicable or inapplicable. MCA’s CARO statement.
Reporting on internal financial controls with reference to financial statements also has its own statutory and exemption analysis. CARO and internal-controls reporting should be settled during planning, so the right evidence and testing can be scheduled. Companies Act, section 143.
A timetable directors can use
Agree the reporting requirements and dates. We establish the accounting framework, appointment position, group or lender deadlines and any additional reports.
Plan the evidence. Management provides the draft trial balance, business changes, significant contracts and the status of reconciliations.
Support the audit. The auditor tests relevant transactions, balances, controls and disclosures; we provide the schedules and supporting documents requested and track open queries.
Resolve findings. Management considers the auditor’s proposed adjustments; we update the accounts, schedules and disclosures for the changes management approves.
Complete reporting. The board approves the statements, required representations are obtained and the auditor signs the report when the work supports it.
The dates for accounts circulation, meetings and annual filings should be built into this timetable. Starting planning early does not mean an opinion can be signed before the necessary evidence exists.
Records to assemble
The audit request is tailored to the company. Core records include ledgers and the trial balance, bank reconciliations, customer and supplier ageing, inventory and fixed-asset records, tax reconciliations, borrowings, major contracts, minutes and related-party information.
For each significant estimate, retain the calculation, assumptions and supporting information. Identify material changes after year-end. If an adjustment is posted during the audit, revise the affected schedules, statements and disclosures together so the final version is consistent.
Report and handover
The signed auditor’s report, and the communications required by the appointment and applicable standards, come from the auditor under their own engagement. From TheTaxCo. you receive the final accounts, supporting schedules and a record of the auditor’s queries and how they were resolved.
Our corporate filing team receives the signed final set, completes the applicable annual filing and handles registry queries without changing the auditor’s report. The auditor’s working papers are their own and do not replace the company’s books and supporting records, which management must retain. Because we prepare the accounts, the auditor makes their own independence assessment, including the prohibited-service rules, before accepting the appointment.
When the books are incomplete
We can start preparation and identify missing reconciliations before the accounts are final. Bookkeeping completion is then scheduled with the responsible finance team or adviser. Evidence limitations and unresolved material differences may affect the auditor’s report; we cannot promise an unmodified opinion.
Related services
Email TheTaxCo., message us on WhatsApp or book a call about the preparation work. Include the financial year, business activity, books status, intended reporting date and whether the company has appointed its auditor.