Do You Need a Statutory Audit in the UK? A Complete Guide for Businesses

12 July 2025 | Audit

If you're running a limited company in the UK, it’s essential to know whether you meet the criteria for a statutory audit. At ARK Accountants, we help businesses navigate their audit obligations with clarity, confidence, and efficiency. Whether you're required to file an audit report or simply seeking assurance, our audit services are tailored to meet your needs and help you stay compliant.

A statutory audit is a legally required review of your financial statements to confirm they provide a true and fair view of your company’s financial performance and comply with applicable accounting standards. It provides assurance to shareholders, creditors, and regulators that your business is being run transparently and responsibly.

Under current UK company law, a private limited company is exempt from a statutory audit if it meets two out of three of the following conditions:

1. Annual turnover of £10.2 million or less
2. Balance sheet total of £5.1 million or less
3. Average number of employees of 50 or fewer

If your business exceeds any two of these thresholds, an audit is mandatory. Certain entities, such as public companies, regulated businesses, or charities over certain income limits, may also be required to undergo an audit regardless of size.

Even if your company is not required by law to undergo an audit, many choose to do so voluntarily for the following reasons:

• Enhanced credibility with lenders, investors, and stakeholders
• Improved internal controls and financial management
• Greater transparency for shareholders
• Preparation for growth, investment, or exit strategies
• Assurance of compliance with tax and regulatory obligations

At ARK Accountants, we deliver tailored, efficient and professional audit services for UK companies of all sizes. Our audit process includes:

• Thorough planning and risk assessment
• On-site and/or remote audit testing
• Compliance with UK GAAP or IFRS
• Detailed analysis of systems and controls
• Clear, jargon-free reporting
• Fixed-fee pricing with no hidden charges

We work across a wide range of sectors, including tech, property, legal, retail, and professional services. Whether you need a full statutory audit or support with audit exemption status, we’re here to help.

Business Activity Audit Requirement Exceeds two of the statutory thresholds Yes Operates in a regulated industry Often Yes Charities with income over £1 million Usually Yes Subsidiary of a larger group Possibly Preparing for sale or investment Recommended

If you're unsure whether your company needs an audit, we can assess your current position and offer guidance tailored to your structure.

Q: Can I claim an audit exemption?
Yes, if your company is classified as ‘small’ and doesn’t fall into any of the categories that automatically require an audit. We can review your status and handle the exemption process.

Q: How long does a statutory audit take?
Depending on your size and complexity, the process typically takes 4–8 weeks from planning to final report. We also offer fast-track audits for companies with urgent filing deadlines.

Q: Are your audit fees fixed?
Absolutely. We provide transparent, fixed-fee audit quotes based on your business size and requirements. No hourly billing, no unexpected extras.

• Specialists in UK statutory audits
• Full compliance with UK accounting standards
• Audit services tailored for SMEs and growing businesses
• Expert guidance on audit exemption and thresholds
• Fixed-fee quotes and fast turnaround options
• Friendly, professional, and confidential service

Whether you're preparing for your year-end filing or you're unsure whether you meet the UK audit threshold, ARK Accountants is here to support you.

📩 Contact us today for a no-obligation, fixed-fee quote. Let us help you meet your legal obligations and strengthen trust in your financial reporting.