FOREWARNED IS FOREARMED (England)

In today’s economy, solid financial information is essential, as it allows a reliable picture to be gained of companies. Through financial analysis, we draw conclusions regarding the activities of business units and make reliable forecasts regarding the efficacy of planned activities. The goal of an audit is to provide an independent, unbiased, reliable assessment of the financial information of the unit being audited or reviewed.

Since the new Authorized Public Accountants Act entered into force on 8 March 2010, audit is distinct from financial review – the latter is similar in terms of content and amount to an audit under simplified procedure. Many smaller and mid-sized companies previously subject to audits are now subject to financial review instead. While it is highly likely that a financial review will disclose problems just as well as an audit, the financial review can always be supplanted by an audit for increased assurance.

An audit of financial statements is obligatory for companies and sole proprietors in the case of which at least two of the indicators as recorded in the financial statements exceed the following conditions: (sales)revenue totalling two million euros and/or assets totalling one million euros and/or average number of employees 30. It is also obligatory to audit the annual report if at least one of the indicators provided in the financial statements exceeds the following conditions: (sales)revenue totalling six million euros and/or assets totalling three million euros and/or the average number of employees is 90. If the company’s indicators are below these limits, but at least two of the operating indicators exceed the conditions – (sales) revenue amounts to one million and/or asset volume to 500,000 euros and/or the average number of employees is 15 – then a review of the annual report must be conducted. It is also obligatory to review the annual report if at least one of the indicators provided in the annual report exceeds the following conditions: (sales) revenue amounts to three million and/or asset volume totals 1.5 million euros and/or the average number of employees is 45.

As before, all public limited companies, state accounting entities, local government units and foundations as well as political parties that receive appropriations from the state budget, and legal persons in public law continue to be subject to an audit obligation under law.
We provide the following audit-related services:
• Audits of annual reports prepared according to Estonian good accounting practice
• Audits and annual reports prepared according to the International Financial Reporting Standards
• Reviews of financial statements
• Special audits
• Accounting consultation