April 2006

SHOULD YOU AUDIT YOUR AUDIT PROCEDURES?

A firm of Cheltenham based accountants is advising local businesses to consider whether they really need an audit after the publication of an industry report showed that many directors are confused over the issue.

Mitchells believes that directors could spend their cash more wisely if they are not required by law to have their accounts audited. This follows on from the recent publication of the Review of How Accountants Support The Needs of Small and Medium Sized Companies and Their Stakeholders, produced by the Professional Oversight Board for Accountancy (POBA), which has stated that many directors are unclear if their accounts are even audited or not.

Nick Mitchell, partner at Mitchells, explains: "Between 1967 and 1994 all registered companies were required to file audited accounts. However since then audit thresholds have been introduced and companies which meet the set criteria can submit un-audited accounts.

"If the report from POBA is correct it seems many companies are not aware of this fact. I believe this could be because they are still being advised to have an audit by their accountants. While an audit can be beneficial, there are far more valuable services which they could spend their money on.

"As a firm we focus on helping companies retain profits and grow, therefore business advisory or even tax efficiency services could be more useful."

For more information call Mitchells on 01242 260 066 or visit:
http://www.mitchells.org