External Non-Statutory Audit
At MFW, we have a number of charity specialists and we act for numerous charities and other not-for-profit entities requiring an audit in accordance with either the Charities Act or the Co-operative and Community Benefit Societies Act.
We also deal with many owner-managed business clients who are below the statutory audit threshold but require an audit for another purpose or who simply want to benefit from the comfort that having an audit report on their accounts gives to their key stakeholders.
How is a non-statutory audit different from a statutory audit?
In practicality, there is no difference between a statutory and non-statutory audit, other than the reason for why the audit is taking place. The procedures required when undertaking a non-statutory audit are still the same and the engagement has to be conducted in accordance with the same Auditing Standards. The only difference in our approach is that we understand that, due to their size, entities requiring a non-statutory audit often don’t have the same level of internal resource as those requiring a statutory audit and therefore may not have the same level of internal controls operating. By discussing your operations and gaining an understanding of your financial control environment from the outset, we can tailor our audit work to work efficiently based on your particular circumstances.
What are the benefits of a non-statutory audit?
Whether you require a non-statutory audit due to legislative requirements or choose to have one voluntarily, the impact of having an audit can be very beneficial, including:
- Enhanced credibility over the accounts and the wider financial functions.
- External investors not involved in the day-to-day running of the business obtaining comfort over the accuracy of the figures being reported on which business decisions, including management remuneration decisions may be made.
- An independent review of the internal controls in place and the operating effectiveness of those controls, with recommendations provided that help to provide a more secure environment and reduce risk to the organisation.
- The potential for professional insight into the business procedures that may lead to greater efficiency of processes and a more productive operating environment.
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