Harnett Accontants

Harnett & Co | Chartered Accountants, Kingston upon Thames
Global House Business Centre 1 Ashley Avenue Epsom Surrey KT18 5AD
ICAEW Authorised Practice
01372253100
Audit & Assurance | Harnett & Co Chartered Accountants Kingston upon Thames Skip to main content
Specialist Services

Audit &
Assurance

Independent statutory and voluntary audit services for companies, charities and not-for-profit organisations across West London and Surrey. Thorough, proportionate and delivered on time without disrupting your operations.

📞 01372253100
What audit really means

An audit done well adds value, not just compliance

Many business owners view the annual audit as a box-ticking obligation. Done well, it is far more than that. A thorough statutory audit provides independent confirmation that your financial statements give a true and fair view, which matters enormously to lenders, investors, grant funders and potential acquirers.

It also creates a structured opportunity to identify weaknesses in financial controls, highlight risks in the business and recommend improvements to processes that may have developed informally over time. Our audit work regularly surfaces issues that management were unaware of and would not have discovered through their normal internal review.

At Harnett and Co we are registered auditors with the ICAEW. We carry out statutory audits under International Standards on Auditing (UK), voluntary audits for businesses that want independent assurance without a legal requirement, and independent examinations for charities and not-for-profit organisations.

ICAEW registered auditors - all audit work carried out under ISA (UK) by qualified and regulated professionals
Minimal disruption - we plan the audit carefully and work around your team so the process does not interrupt daily operations
Management letter included - detailed report of findings, control weaknesses and practical recommendations provided after every audit
Deadlines met as standard - we work to your filing timetable at Companies House and the Charity Commission
Senior-led throughout - a qualified audit partner is involved at every stage, not just at sign-off
Combined with accounts preparation - where required, we can prepare the statutory accounts and audit them as a fully joined-up service
What we cover

Audit and assurance services for every requirement

From statutory company audits to charity independent examinations, we provide independent assurance across a wide range of organisations and obligations.

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Statutory Company Audit
Independent audit of your statutory accounts under the Companies Act 2006 and ISA (UK). Required for companies that exceed the audit threshold. Audit opinion issued and accounts filed at Companies House.
Statutory
✅
Voluntary Audit
An independent audit for businesses below the statutory threshold that want the credibility and assurance that comes with audited accounts. Often required by lenders, investors or parent companies.
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Internal Audit
Objective review of your internal controls, risk management processes and operational procedures. Identifies weaknesses before they become problems and provides a clear remediation roadmap.
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Charity Independent Examination
Independent examination of charity accounts for organisations with gross income between £25,000 and £1 million. Required by the Charity Commission where a full audit is not yet mandatory.
Charity
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Charity Statutory Audit
Full statutory audit for charities with gross income over £1 million or gross assets exceeding £3.26 million. Conducted under the Charities Act 2011 and reported to the Charity Commission.
Charity
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Grant Audit and Reporting
Independent verification that grant funds have been used in accordance with funder requirements. We work with a wide range of grant funders and understand their specific reporting requirements.
⚖️
Solicitors Accounts Rules Audit
Annual SRA Accounts Rules audit for law firms holding client money. Delivered by experienced auditors familiar with the Solicitors Regulation Authority requirements and reporting format.
Specialist
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Academy Trust Accounts Return
Accounts return preparation and independent scrutiny for academy trusts, including the ESFA Accounts Direction requirements and the Academy Trust Handbook compliance framework.
Specialist
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Assurance Reviews
Limited assurance engagements and agreed-upon procedures for specific financial matters. Used by boards, investors and lenders who need independent comfort on particular figures or processes.
Audit thresholds 2024/25

Does your company need a statutory audit?

Under the Companies Act 2006, a company is exempt from statutory audit if it qualifies as small. For accounting periods beginning on or after 1 January 2016, a company qualifies as small if it meets at least two of the three qualifying conditions in a financial year.

The thresholds were significantly increased from 1 October 2023. A company must now have an annual turnover of no more than £10.2 million, total balance sheet assets of no more than £5.1 million, and no more than 50 employees on average during the year, meeting at least two of these criteria to remain audit-exempt.

There are important exceptions. A company loses its audit exemption if it is a public company, a subsidiary that cannot use group audit exemption, an insurance company, a banking company, an authorised insurance firm or a company that is required to carry out an audit by its shareholders. Parent companies must also consider whether the group as a whole exceeds the threshold.

If you are unsure whether your company requires a statutory audit, speak to us. We can review your situation and advise clearly without obligation.

Small Company Audit Exemption
Exempt if 2 of 3 met
Meet at least 2 of these 3 conditions:
Annual turnover not more than £10.2 million. Balance sheet total not more than £5.1 million. Average number of employees not more than 50. Thresholds apply from accounting periods beginning on or after 1 January 2016 (updated October 2023).
Statutory Audit Required
Mandatory
Audit is compulsory if any of these apply:
Company exceeds the small company thresholds above. Public limited company (PLC). Subsidiary that cannot claim group audit exemption. Regulated entity such as a bank, insurer or FCA-authorised firm. Required by shareholders holding 10% or more of shares.
Voluntary Audit
No legal requirement
Often needed even when exempt:
Lender or bank requires audited accounts as a loan condition. Investor or shareholder requests independent verification. Parent company policy applies. Tendering for public sector contracts that require audited accounts. Acquisition due diligence.
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Independent Examination
For charities with gross income between £25,000 and £1 million. A less intensive scrutiny than a full audit but still requires an independent qualified examiner.
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Full Charity Audit
Required for charities over £1 million income or £3.26 million assets. Conducted under the Charities Act 2011 with reporting to the Charity Commission.
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Trustees Report Review
We review the trustees annual report for consistency with the financial statements and compliance with Charity Commission reporting requirements.
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Grant Compliance
Independent verification for grant funders including the National Lottery Community Fund, Sport England, Arts Council and central and local government funders.
Charity audit and examination thresholds (England and Wales)
Gross income below £25,000No requirement
Gross income £25,001 to £1 millionIndependent examination
Gross income over £1 millionFull audit required
Gross assets over £3.26 millionFull audit required
Charities and not-for-profits

Charity audit and independent examination specialists

Charities face a distinct set of audit and scrutiny requirements under the Charities Act 2011, governed by the Charity Commission for England and Wales. The requirements depend on the level of gross income and the total assets held by the charity.

An independent examination is not a lesser version of an audit. It is a specific type of scrutiny that requires an appropriately qualified examiner who understands the Charity Commission's expectations. We have extensive experience examining and auditing charities across a wide range of sectors including education, welfare, arts, sport and community organisations.

Beyond compliance, we understand the particular challenges charities face. Restricted and unrestricted fund accounting, volunteer and in-kind contributions, legacy income recognition and the Charity SORP all require specific technical knowledge. We bring that knowledge to every engagement.

How the audit works

A clear, structured process from start to finish

We plan every audit in detail before fieldwork begins so there are no surprises and your team knows exactly what to expect.

1

Planning and risk assessment

We assess your business, identify key risk areas and prepare a detailed audit plan. You receive a clear request list well in advance of fieldwork.

2

Fieldwork

Testing of transactions, balances and controls carried out on-site or remotely. We keep disruption to your team to an absolute minimum throughout.

3

Review and findings

Results reviewed by the audit partner. Any issues discussed with management before the final report so nothing comes as a surprise.

4

Audit report and filing

Signed audit opinion issued, management letter delivered and accounts filed at Companies House or the Charity Commission to your deadline.

Who we work with

Audit experience across a wide range of organisations

We carry out audits and independent examinations for companies, charities and specialist entities across West London and Surrey.

🏢
Owner-Managed Companies
Companies that have grown beyond the audit threshold and require their first statutory audit, or those voluntarily seeking independent assurance for lenders or investors.
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Charities and Trusts
Registered charities, community interest companies and charitable incorporated organisations requiring independent examination or full audit under the Charities Act 2011.
🏫
Schools and Academies
Academy trusts requiring accounts return preparation and independent scrutiny to the ESFA Accounts Direction and Academy Trust Handbook standards.
⚖️
Professional Services Firms
Solicitors requiring annual SRA Accounts Rules compliance audits and other professional services firms that hold client money or operate under regulatory audit obligations.
🏗️
Construction and Property
Construction contractors and property companies where lenders or joint venture partners require audited financial statements as a condition of financing arrangements.
🌍
Subsidiaries and Group Companies
UK subsidiaries of overseas groups that require a local audit, including those where group auditors require us to act as component auditors and report directly to them.
Common questions

Audit and assurance questions answered

A company is exempt from statutory audit if it qualifies as small under the Companies Act 2006. To qualify as small, a company must satisfy at least two of the following three conditions in a financial year: annual turnover not more than £10.2 million, balance sheet total not more than £5.1 million, and average number of employees not more than 50. These updated thresholds apply to accounting periods beginning on or after 1 October 2023. Important exceptions apply: public companies, certain regulated entities and subsidiaries that cannot claim group audit exemption must be audited regardless of size.
The fieldwork phase for a typical SME statutory audit takes between two and five working days on-site, depending on the complexity of the business and the quality of the records. The full process from engagement to signed audit report typically takes four to eight weeks. We send a detailed information request list well in advance so your team can prepare, which significantly reduces the time needed on-site and avoids delays. We always work to your Companies House filing deadline.
A statutory audit is conducted under the Companies Act 2006 and International Standards on Auditing (UK) by a registered auditor. It involves a rigorous, risk-based assessment of the financial statements and internal controls, and results in a formal audit opinion. An independent examination is a Charity Commission requirement for smaller charities. It is a less intensive form of scrutiny, does not follow full ISA (UK) procedures and does not produce an audit opinion. However, it still requires the examiner to be independent and to have appropriate qualifications. Both require the examiner or auditor to be independent of the organisation.
For statutory audits under the Companies Act, the same firm cannot in most circumstances prepare and then audit the accounts, as this would compromise the independence required under auditing standards. However, we can prepare the accounts and arrange for them to be audited by a separate registered audit firm, or vice versa. For charity independent examinations the rules are different and we can in many cases both prepare and examine the accounts depending on the circumstances. We will always advise you on the most practical and compliant arrangement for your specific situation.
A management letter (formally called a letter of reportable matters or management representation letter) is a separate document issued alongside the audit opinion. It sets out any significant weaknesses in internal controls, procedural issues or areas of risk that were identified during the audit. It also includes our practical recommendations for addressing each issue. We issue a management letter as standard after every statutory audit. It is one of the most practically useful outputs of the audit process and is valued by boards and management teams who take governance seriously.
Charities registered in England and Wales with gross income over £25,000 must file an annual return and accounts with the Charity Commission. Charities with income between £25,000 and £1 million must have their accounts independently examined. Those with income over £1 million, or gross assets over £3.26 million, must have a full statutory audit. The accounts must be filed with the Charity Commission within 10 months of the end of the financial year. We prepare the accounts, conduct the examination or audit, and file everything with the Charity Commission on your behalf.
Starting your first statutory audit is straightforward. Contact us and we will begin with a short meeting to understand your business, your accounting systems and the state of your year-end records. We will explain what the audit process involves, what information we will need from you and what the likely timescales and costs will be. We then send a formal engagement letter and a detailed pre-audit information request list. Many of our clients find their first audit much less disruptive than they expected. We prepare you thoroughly so there are no surprises.
Related services
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Year-End Accounts and Corporation Tax
Statutory accounts prepared to the standard required for audit. We can prepare your accounts and coordinate the audit with a registered auditor to minimise duplication and cost.
Learn more ›
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Bookkeeping and VAT Returns
Clean, well-maintained bookkeeping throughout the year reduces audit time significantly. Well-coded records mean less time spent on queries during fieldwork and lower overall audit fees.
Learn more ›
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Management Accounts
Regular management accounts give auditors comfort that financial performance has been monitored throughout the year, which reduces the scope of substantive testing needed at year-end.
Learn more ›
Ready to discuss your audit?

Independent, thorough and delivered on time

Whether you need a statutory audit, a charity independent examination or voluntary assurance for a lender or investor, speak to us. We will give you a clear picture of what is involved and what it will cost.

📞 01372253100