Statutory Audit
Navigating statutory audit requirements with confidence and clarity.
Audit that builds confidence
At Crowe UK, our approach to audit is grounded in quality, transparency and practical insight. We recognise that an audit is more than a compliance requirement: it is an opportunity to strengthen confidence, support good governance and provide stakeholders with a clearer understanding of an organisation’s financial position.
We work with a broad range of organisations, including privately owned companies, PE-backed businesses, public sector bodies, social purpose and non profit organisations, and companies listed in the UK and internationally. Our Audit teams combine technical rigour with sector knowledge, tailoring their approach to the needs, risks and ambitions of each client.
Across the UK, our audit partners, directors and dedicated teams are focused on delivering high quality audits with appropriate challenge, clear communication and a commitment to adding value throughout the audit process.
Statutory audit process
Delivering a structured, focused and efficient audit process from initial planning to final reporting
At Crowe UK, we maintain regular communication throughout the audit process to keep engagements focused, efficient and aligned to your organisation’s reporting timetable.
Quality and regulation
Providing robust statutory audits backed by regulatory oversight
Statutory audit lies at the heart of the UK’s financial reporting regime. Our audit approach at Crowe UK delivers a robust service with constructive challenge, providing assurance to owners and those with governance responsibility.
Following the introduction of the European Union Audit Regulation and Directive into UK law on 17 June 2016, Crowe is classified as a ‘Public Interest Entity auditor’ and, as a result, continues to be subject to oversight and inspection by the Audit Quality Review (AQR) team, which operates within the Conduct Division of the UK Financial Reporting Council.
As such, we are subject to periodic full-scope inspections by the AQR, whose remit is to ensure that the firm has appropriate policies and procedures that will deliver audits of the appropriate quality. The AQR’s scope of work also includes inspecting audit files of public interest entities.
Frequently asked questions
Answering common questions about statutory audits and audit requirements
Does my organisation need a statutory audit?
Whether your organisation requires a statutory audit depends on its size, structure and regulatory status. While some private limited companies may qualify for audit exemption, certain organisations must have an audit regardless of size, including some public companies, regulated entities and organisations where shareholders request an audit.
For accounting periods beginning on or after 6 April 2025, a private limited company may qualify for audit exemption if it meets at least two of the following criteria: annual turnover of no more than £15 million, gross assets of no more than £7.5 million and an average of 50 or fewer employees. Even where a company qualifies for exemption, shareholders holding at least 10% of shares by number or value can require an audit by making a written request at least one month before the end of the financial year.
What should organisations expect during a statutory audit?
A statutory audit is an independent examination of an organisation's annual financial statements to assess whether they present a true and fair view.
The process typically includes audit planning, understanding the organisation and its risks, reviewing relevant controls, assessing significant judgements and obtaining audit evidence through testing and analytical procedures. Auditors do not examine every transaction. Instead, they use risk assessment, sampling, controls testing and substantive testing to obtain sufficient appropriate audit evidence.
As part of the audit, organisations may be asked to provide financial records, reconciliations, supporting schedules, board or committee minutes, key contracts, payroll information, accounting estimates and evidence relating to significant transactions.
How long does a statutory audit take?
The length of a statutory audit depends on several factors, including the size and complexity of the organisation, the quality of available records, the level of audit risk and the agreed reporting timetable.
Early planning, clear responsibilities, timely responses to audit requests and open communication between management and the audit team can help improve efficiency and reduce delays throughout the engagement.
How do auditors assess risk, materiality and going concern?
Risk assessment, materiality and going concern are fundamental elements of every statutory audit.
Materiality helps auditors focus on the matters most likely to influence the decisions of users of the financial statements. It is used when planning audit procedures, evaluating evidence and assessing whether identified misstatements require correction or disclosure.
Going concern refers to management's assessment of whether the organisation has the resources to continue operating for the foreseeable future. Auditors review this assessment by considering factors such as forecasts, liquidity, financing arrangements, key assumptions and relevant risks, while also evaluating whether appropriate disclosures have been included in the financial statements.
What happens at the end of a statutory audit?
At the conclusion of the audit, the auditor evaluates the evidence obtained, resolves any outstanding matters and forms an opinion on the financial statements.
The audit opinion is then issued, stating whether the financial statements provide a true and fair view in accordance with the applicable financial reporting framework. Auditors may also communicate findings, recommendations and control observations to management and those charged with governance. Any significant matters identified during the audit are typically discussed before the final audit report is issued.
How can organisations prepare for a smooth and efficient audit?
Effective preparation can significantly improve the efficiency of the audit process and reduce disruption to day-to-day operations.
Organisations should agree the audit timetable at an early stage, assign clear owners for audit requests, prepare reconciliations and supporting schedules in advance, and ensure key documentation is readily accessible. It is also advisable to discuss unusual transactions, significant judgements, acquisitions, restructurings or other complex matters with the audit team as early as possible.
Strong preparation, clear communication and timely responses help create a more efficient audit process and support the delivery of high-quality financial reporting.
Transparency reports
Demonstrating our commitment to audit quality, governance and transparency
Our annual Transparency Report illustrates how our commitment to quality is established at the very highest level in the firm. In particular, it sets out details of our approach to engagement performance and monitoring for audit assignments and maintaining the competence of our audit partners and staff.
Our knowledge and experience are recognised in our specialist sectors, which include social purpose and non profits, pensions funds and professional practices, alongside corporate business.
Having confidence in financial information and ensuring statutory compliance is a prerequisite for any organisation and its stakeholders. In an increasingly regulated and changing environment, the firm regularly provides specialist Assurance advice.
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