Audit Lowe Down – Do You Need an Audit? Practical Guidance for Australian Businesses
Do You Need an Audit? Practical Guidance for Australian Businesses
Navigating whether your business needs an audit can be tricky, but it is crucial to ensure compliance.
Determining whether your business needs an audit in Australia depends on a few key factors, including business size, structure, and industry.
For large proprietary companies, audits are mandatory if they meet at least two of the following thresholds: annual revenue of $50 million or more, assets of $25 million or more, or 100 or more employees. Public companies and some not-for-profits are also required to undergo audits to comply with regulatory requirements.
But what if your business is small or medium-sized? Even if an audit is not legally required, you might still need one. For example, your bank might request audited financial statements as part of loan conditions, or suppliers or governments may want assurance that your financials are accurate and reliable. Additionally, certain industries, such as those regulated by specific state or federal laws, may have audit requirements regardless of entity size.
Even if you have no requirement for an audit, many entities choose to have their financial statements audited as part of good governance since an audit isn’t just a compliance exercise to tick a box—an audit can also provide valuable insights into your business operations and financial health as well as improving credibility with stakeholders.
If you are uncertain about whether an audit is necessary or could benefit your business, consulting with a professional can clarify your obligations and help you make informed decisions about the potential value of an audit.
Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.
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