As a result of regulatory changes to audit thresholds in recent years, many companies are no longer required to have a statutory audit. While many companies have continued to have an audit for various reasons other companies still want to have their accounts reviewed externally, without the need for an audit.
The scope of a limited assurance review does not include verification procedures, as in a full audit, but does include discussions with management about the treatment of key items, application of analytical procedures to the financial statements and assessment of whether the applied accounting policies are appropriate and adequately disclosed.
The scope is insufficient to allow the reviewer to give an opinion on whether the accounts give a true and fair view. Instead, the assurance review report concludes upon whether, based on the review, anything has come to the reviewer’s attention that suggests the accounts are not true and fair.
Limited assurance review may appeal to the following companies:
those preparing for growth
those seeking comfort for management and reassurance for stakeholders
those seeking finance or to reassure existing lenders and investors about the quality of their financial statements
owners looking to sell a company and for potential acquirers
those who want assurance but would rather not incur the cost and time burden of a full audit
The cost of a limited assurance review will be greater than accounts preparation as more detailed work will be required. However, it will cost less than a statutory audit. The work involved will be tailored to the key areas of your company’s business and your specific requirements.
| For more information, or to arrange a free initial meeting, please contact our audit partner Paras Shah on 020 8458 7427 or click on his name to send an email. |
