ICAEW-regulated statutory audits for UK companies and LLPs — conducted by an experienced team with minimal disruption and clear, actionable findings.
What is a statutory audit?
A statutory audit is a legally required, independent examination of a company’s financial statements carried out by a registered auditor. Under the Companies Act 2006, limited companies and LLPs that exceed certain size thresholds must have their annual accounts audited. The purpose is to give shareholders, lenders and other stakeholders independent confirmation that the accounts present a true and fair view of the company’s financial position.
If your company requires a statutory audit, having the right audit partner matters. A statutory audit should do more than satisfy a legal obligation. It should give you independent assurance over your financial reporting, surface any risks or control weaknesses, and deliver clear recommendations that help you run the business better.
Our audit team works with companies across the Thames Valley and beyond, from owner-managed SMEs to UK subsidiaries of international groups.
On this page
Eligibility
Who needs a statutory audit in the UK?
A statutory audit is required in several distinct situations. Size is the most common trigger, but it is not the only one.
Size thresholds
Companies and LLPs that exceed the Companies Act 2006 size thresholds must have a statutory audit. See the thresholds table below.
FCA-regulated businesses
Banks, insurers, and firms authorised under the Financial Services and Markets Act require a statutory audit regardless of their size.
Group subsidiaries
Companies that are part of a group where the group as a whole exceeds the small group thresholds (£15m net turnover or £7.5m net assets) cannot claim audit exemption, even if the subsidiary itself is small.
Charities
Charities with gross income over £1 million, or assets over £3.26 million with income over £250,000, require an audit under the Charities Act 2011, often at lower thresholds than Companies Act requirements.
Solicitors’ practices
Law firms holding client money must have an independent SRA accountant’s report under the SRA Accounts Rules, which is a specialist form of audit assurance.
Grant and public funding recipients
Organisations receiving public funding or grants are often required to provide independent verification of how funds have been spent, regardless of company size.
Shareholder requirements
Even where a company qualifies for exemption, any shareholder holding 10% or more of shares can require a statutory audit by written notice at least one month before the financial year end.
Growing towards the threshold?
Businesses approaching the threshold often benefit from appointing an auditor early. The first statutory audit runs more smoothly when the auditor already knows the business and its systems.
Size thresholds
What are the current statutory audit thresholds?
A company or LLP qualifies for audit exemption if it meets at least two of the three criteria below. Both criteria must be met in two consecutive financial years (with an exception for the first year of incorporation).
Criteria | Audit exemption threshold |
Annual turnover | No more than £15 million |
Balance sheet total | No more than £7.5 million |
Average number of employees | No more than 50 |
Updated for financial years beginning on or after 6 April 2025. The previous thresholds (£10.2m turnover / £5.1m balance sheet) applied to earlier periods. If your company previously exceeded the old thresholds but now falls below the new ones, you may be able to claim the exemption from the first qualifying financial year. | |
Exceeding the thresholds means a statutory audit is legally required. If you are unsure whether your company meets the criteria, or whether any of the size-independent categories above apply to your business, contact our team for a straightforward assessment.
If your company qualifies for audit exemption but you are considering a voluntary audit for other reasons, see our non-statutory audit page.
Compliance risk
What happens if a company misses a statutory audit?
Failing to have a statutory audit when legally required is not simply an administrative oversight, it carries real legal and commercial consequences.
Failing to arrange a statutory audit is a criminal offence under the Companies Act 2006. Directors can face personal liability and fines. Lenders, investors and other stakeholders may lose confidence in unaudited accounts and the absence of an audit opinion can create real complications at the point of a funding round, sale, or due diligence process.
If you have missed a statutory audit, or are concerned that your company may be non-compliant, speak to our team as early as possible. The sooner the situation is assessed, the more straightforward it is to resolve.
Beyond compliance
What does a statutory audit add to your business?
A good statutory audit goes further than satisfying a legal obligation. Handled well, it gives directors and shareholders genuine confidence in the numbers and surfaces issues before they become problems.
Independent confirmation that your accounts present a true and fair view
Strengthens credibility with lenders, investors and key stakeholders
Identifies control weaknesses, risks and accounting errors early
Improves internal processes and financial governance
Supports better decision-making with independently verified data
Positions the business more confidently ahead of a sale, exit or investment
Provides assurance to shareholders who are not involved in day-to-day management
Demonstrates financial discipline to franchisors, major customers or professional bodies
Our approach: we do not treat a statutory audit as a compliance exercise with a report attached. Our audit team provides a management letter alongside the audit opinion. We can cover any findings, control observations and recommendations so you come away with something useful, not just a signed set of accounts.
How it works
What does the statutory audit process involve?
We have built a process that is transparent from day one. Your team knows what is required and when so there are no last-minute requests, and the year-end pressure is kept to a minimum.
1
Understand your business
We start by learning how your business operates, its structure, the sectors it works in, where the risks lie, and what matters most to you and your shareholders. For statutory audits, this also includes reviewing your obligations under the Companies Act and any sector-specific regulatory requirements that apply.
2
Audit planning
We develop a clear, risk-based audit plan with your team setting out exactly what is required, who is responsible, and when. Everyone understands the timetable before fieldwork begins, so there are no surprises and any issues have time to be resolved before the reporting deadline.
3
Efficient fieldwork
Our team conducts audit fieldwork efficiently and with minimal disruption to your day-to-day operations. We use secure, cloud-based tools for document sharing to keep the process moving without unnecessary back-and-forth. For group structures, we coordinate component audit work with the parent auditor to reduce duplication of effort on your team’s side.
4
Audit opinion and management letter
We issue a clear audit opinion on the financial statements alongside a management letter covering our findings, any control observations and practical recommendations. We walk you through both documents so you understand what they mean and so any follow-up action is agreed and owned before we leave.
Why Seymour Taylor
Why choose Seymour Taylor for your statutory audit?
We are not a Big Four firm and that is a genuine advantage for the businesses we work with. You get experienced, senior people involved in your audit from day one, not a junior team working to a partner who appears only to sign off the report. Our guarantee is that a director is involved in your work at all times.
Founded in High Wycombe in 1917, Seymour Taylor has been providing audit and assurance services to businesses across the Thames Valley for over a century. Our audit team has experience across a broad range of sectors and business structures, from owner-managed SMEs to UK subsidiaries of international groups.
Through our membership of MGI Worldwide, a top 20 international accounting network with presence in over 100 countries, we can act as a component or lead auditor within international group structures, and coordinate with overseas parent auditors where required.
Owner-managed businesses
UK group subsidiaries
International groups
Charities
Professional services
Insurance sector
Property & construction
Technology businesses
Established in High Wycombe since 1917
Team of 44 qualified professionals
MGI Worldwide member 100+ countries
Component and group audit experience
ICAEW-regulated for audit work
Audit regulation: Seymour Taylor is registered to carry on audit work in the United Kingdom by the Institute of Chartered Accountants in England and Wales (ICAEW). Details of our audit registration can be viewed at auditregister.org.uk.
Our audit team
FAQs
Statutory audit — frequently asked questions
Your company needs a statutory audit if it exceeds two of the three size thresholds under the Companies Act 2006: turnover over £15 million, balance sheet total over £7.5 million, or more than 50 employees (for financial years beginning on or after 6 April 2025). Some organisations, including FCA-regulated businesses, group subsidiaries where the wider group exceeds the small group thresholds, and charities over the relevant income threshold, require an audit regardless of size. If you are unsure, contact our team for a straightforward assessment.
For financial years beginning on or after 6 April 2025, a company qualifies for audit exemption if it meets at least two of: turnover no more than £15 million, balance sheet total no more than £7.5 million, and no more than 50 employees. The previous thresholds (£10.2 million turnover and £5.1 million balance sheet) applied to earlier periods. If your company has recently dropped below the new thresholds, you may be able to claim exemption from the first qualifying year.
Failing to have a statutory audit when legally required is a criminal offence under the Companies Act 2006. Directors can face personal liability and the company may receive fines. Beyond the legal risk, the absence of an audit opinion can cause real complications in a funding round, sale process, or due diligence exercise. If you are concerned about compliance, speak to us as early as possible.
Timescales depend on the size and complexity of the business. For most SMEs, fieldwork is completed within a few weeks. We agree a clear timetable at the planning stage and structure the process to minimise disruption to your team. For group structures or businesses with complex accounting, we plan additional time and coordinate with any relevant parent or component auditors.
A subsidiary may be exempt under section 479A of the Companies Act 2006 if it is included in consolidated group accounts that are themselves audited, and the parent company provides a formal guarantee of the subsidiary’s liabilities. However, this exemption is not available if a shareholder holding 10% or more of shares gives written notice requiring an audit. The group rules can be complex, so speak to our team if you are unsure what applies to your structure.
A statutory audit is an independent examination of a company’s annual financial statements required under the Companies Act 2006. An accountant’s report, such as an SRA accountant’s report for solicitors holding client money is a specific assurance engagement required by a regulatory body rather than the Companies Act. Both must be carried out by a registered auditor, but the scope, applicable standards and purpose differ. Our team has experience in both.
Get in touch
Preparing for a statutory audit?
Whether you are approaching a statutory audit for the first time, looking for a more supportive audit partner, or want to understand exactly what your obligations are under the current thresholds, our team is here to help. We offer an initial discovery meeting with no obligation and no cost.