UK Group Audit
A UK Group Audit is no different to a UK Limited Company audit – it is a vital part of building trust, improving transparency, and meeting your compliance responsibilities under the Companies Act 2006.
A UK Group Audit is essential for maintaining stakeholder confidence, fulfilling regulatory obligations, and improving governance across your group.
At SMH Group, we provide tailored audits for UK parent companies and its subsidiaries, offering practical insights that support stronger group-wide decision-making and control.
Do you need a UK Group Audit?
The first step is to determine your group size. This informs whether or not you are required to prepare consolidated financial statements and subject to audit.
When a group is not small, consolidated financial statements are required and all members in the group, regardless of their size are subject to audit. However, there are exemptions.
Group size is based on the following thresholds. To qualify as a small group, the group must meet 2 out of the 3 criteria:
| Periods commencing before 5 April 2025 | Periods commencing on or after 6 April 2025 | |||
| Criteria | Net Threshold | Gross Threshold | Net Threshold | Gross Threshold |
| Turnover | <£10.2m | <£12.2m | £15.0m | £18.0m |
| Total assets | <£5.1m | <£6.1m | £7.5m | £9.0m |
| No. of employees | <50 | <50 | <50 | <50 |
The ‘net’ and ‘gross’ bases may be mixed in determining whether the criteria have been met.
*Net = as per consolidated accounts
*Gross = adding together the individual accounts before deducting intragroup transactions/balances
Where a subsidiary is small and wholly owned by a UK parent company, there is opportunity for the company to be exempt from audit, subject to certain criteria.
A Group Audit may also be required if:
- It is requested by shareholders, lenders or regulators
- It is an ineligible group
The basis for determining the size of a group and the need for audit is complex. Speak to one of our advisers to identify your needs and how we can help you in the most effective way.
Benefits of a UK Group Audit
A robust Group Audit can support your business in a number of ways:
- Increases confidence in your consolidated financial statements
- Provides a clear view of group-wide financial performance
- Identifies areas inconsistency between entities
- Provides an opportunities to assess the governance structure of the group
- Strengthens your reporting position when seeking funding or investment
- Gives you access to year-round support from a team that understands your structure and goals
Our audit process
A well structured approach is critical to a successful group audit. Our well planned approach ensures minimal distribution and a thorough audit. Our process includes:
- Planning and risk assessment – We understand your group structure to help you assess your needs, liaising with group auditors where needed. We get to know your business, the key business risks across the group and the internal control environment.
- Coordination of fieldwork and testing – We set clear timetables with all parties, such as subsidiary entities and group auditors, and complete testing on those entities subject to audit.
- Reporting and recommendation – In addition to the audit opinion, we provide a report with key insights into your business having had the opportunity to thoroughly review processes and understand your goals, giving you improved governance.
Get in touch
Contact the SMH Audit & Assurance team on info@smh.group or 01142 664 432 to learn more about our UK Group Audit services and how we can help you.
