Auditors
Auditors are required to report as to whether the financial statements of a company have been properly prepared under the appropriate rules and truly and fairly reflect the state of the company's affairs.
In larger companies the appointment of appropriate auditors is seen as vital to the proper governance process whereas for certain small companies it is not essential to have auditors at all. However, the time and trouble that can be saved by the Company might well justify the audit costs and certainly where future borrowing may be necessary the production of audited accounts can more easily satisfy the potential lender or investor.
In many companies the accountants also act as auditors provided the latter are members of a recognized supervisory body.
For more information you should contact your accountants or obtain Notes for Guidance from Companies House.
All PBS information sheets are designed to provide the detail you need to implement best business and employment practices. They are not a detailed commentary on the current law and where advice is needed in a specific case you should contact PBS for expert consultation.