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There are many reasons why you might require some assurance over your financial statements.

Normally this will be either because some third party has imposed the requirement on you, or because you have reached a limit imposed by legislation. Our team is able to provide you with all levels of assurance requirement that might arise.

Please contact us if you would like to request a quote for service, or read on further if you’re in any doubt about your requirements.



What is a statutory audit?

A statutory audit is a comprehensive review of your records, resulting in us providing you with an audit opinion, which is a statement that states whether or not your financial statements represent a true and fair view and whether or not they appear to be free from material misstatement.

We will conduct a review of the business for the year and will then issue an audit opinion on conclusion. We will manage the process as efficiently and painlessly as possible.

This differs to an assurance assignment where we will just say that “nothing has come to our attention” rather than making a positive statement that the accounts show a true and fair view and appear to be free from material misstatement.

When will I require an audit?

The requirement for an audit will arise for different reasons depending on what type of entity you are.

The requirement for a statutory audit is derived from the Companies Act 2006. Most commonly you require an audit if you breach two of three conditions, for two consecutive years:

For periods beginning before 1 January 2016:

For periods beginning on or after 1 January 2016:




Gross assets



Number of employers



This is not a finite list of reasons for having an audit, and ultimately any company can be required to have an audit, for example if the bank requires that you do so before they provide you with finance, or simply because you want the added assurance.

Does your company require a statutory audit? Contact us to request a quote for our services. If not, you should check if you might benefit from an assurance assignment.

You will need to have your accounts either audited or independently examined, only if your income for the year is in excess of £25,000. If your charity’s income is below this threshold, then you only need to apply external scrutiny if your governing document requires it.

We can accommodate your audit requirements, but also are experienced in preparing accounts for charities. If you also require some involvement in the preparation of your accounts, please take a look at our accountancy services page.

Income between £25,000 and £1 million

At this income level, you are required to appoint a registered auditor to conduct an independent examination of your accounts. This is not the same as a statutory audit but is often referred to as an audit for simplicity.  This is in fact an assurance assignment

We will examine your accounts at a competitive rate and will provide you with an independent examiners report for inclusion in your financial statements.

We have expertise in examining a wide variety of smaller charities, including trusts for sports personalities, overseas aid organisations, religious institutions and a variety of interesting and inspiring causes.

Does your charity require an independent examination? Contact us to request a quote for our services.

Income of over £1 million

If your charity has grown to over £1 million in income, you will require a statutory audit.

Your club or Co-operative will be governed by both your governing document (constitution) and the Co-operative and Community Benefit Societies Act 2014. Your constitution, especially if written a long time ago can require you to have a full statutory audit and we can provide this service for you. However, you may be entitled (with a simple resolution) to use our Limited Assurance service.

We can provide you with specialist services and reviews, for example we undertake audits of compliance with Solicitors Regulation Authority (SRA). We are aware that there are many areas that can be looked at that are not dictated by the Companies Act (the most common driver of an audit) and our experienced team can apply the audit philosophy to a wide variety of scenarios which would fall under our Limited Assurance service.

Limited Assurance

There are some scenarios where you are not required by law, or your governing body/document allows for a lower tier of assurance than a statutory audit. Limited assurance can provide a very targeted and specific assurance in any area you require, and this is not limited to simple financial information. This can be, for example, a review of your systems.

Simply, the outcome of our work will result in a statement from us saying that ‘nothing has come to our attention’ during the course of our work. This is why the assurance is ‘limited’ and why it is different to the very clear statement from us when we conduct a statutory audit that the accounts show a ‘true and fair view’ and appear to be free from material misstatement.

For charitable companies, this assurance is often referred to as an Independent Examination.

Require more information?

If you would like more information or would like to speak to us direct then call us on 01962 735544. Or if you would prefer, ask us a question online.

The Directors of Butler & Co Audit Limited are:

Mrs Julie M Butler FCA (Audit Partner and RI)

Mr Stephen J Slater FCA (RI)

Ms Lucinda MC Knighton ACA MAAT

Firm Information

  • Standard Terms of Business can be accessed here.
  • Butler & Co Audit Limited is registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales.
  • Details about our audit registration can be viewed at under reference number C009124135.
  • Our audit work is conducted under the Audit Regulations and Guidance, which can be found at The ethical guidelines that we follow can be found at We are also governed by the International Standards on Auditing at
  • In accordance with the disclosure requirements of the Provision of Services Regulations 2009, our professional insurance indemnity insurer is AXA Insurance UK plc. The territorial coverage is worldwide excluding professional business carried out from an office in the United States of America or Canada and excludes any action for a claim brought in any court in the United States of America or Canada.

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Butler & Co, Bennett House, The Dean, Alresford, Hampshire SO24 9BH

Butler & Co is a Partnership, regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.
Licensed by the Institute of Chartered Accountants in England & Wales to carry out the reserved legal activity of non-contentious probate in England and Wales.
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