March Audit Newsletter

Welcome to the March Audit update! 

External client update 

Audit of the Townhouse Group: 

We’re delighted to report on a sizeable new audit win. This was an internal referral from Mitchell Gooderham in Ipswich, where the team manages the accounts for the holding company.  

The client, Townhouse Group, has over 35 entities under the holding company and will generate an additional fee of £200k for Affinia. This will be another amazing opportunity to collaborate across our offices and service lines.  

Oli White is managing the client’s audit requirements and says:  

“After a positive initial meeting with the client, I soon discovered the structure of the group meant that after breaching the audit limits, the whole group, including the subsidiaries, required an audit. Following several discussions with the client about ways to reduce their audit burden, they ultimately decided to request an audit of all entities within the group. We are now just weeks away from starting the work, thanks to the valuable input from Gemma MacAndrews, Jubilee Doroteo, Dawid Pretorius and Lee Fullgrabe.” 

Technical updates 

Audit threshold changes – important reminder: 

For the first time in almost a decade, the Government has increased the company threshold size limits to reassess which accounting basis companies are able to use to prepare their financial statements. This in turn affects statutory auditing requirements.  

It’s worth a recap on the new rules, which are effective for accounting periods commencing on or after 6th April 2025.  

A company may be exempt from a statutory audit if it meets at least two of the following criteria:

• Annual turnover of no more than £15 million (increased from £10.2 million). 

• Total assets of no more than £7.5 million (increased from £5.1 million). 

• 50 or fewer employees (unchanged). 

When having conversations with clients falling into this category, you may wish to highlight some benefits of opting for a voluntary audit:  

• They offer an independent review of their financial statements, which can build trust with investors, creditors and customers. 

• An audit can help improve internal controls, highlighting areas of weakness/concern, which can in turn help to reduce financial mismanagement or fraud. 

• Helps to ensure regulatory compliance by identifying areas where a company may need to improve its adherence to tax laws or industry regulations, reducing the risk of penalties or legal issues in the future. 

Highlighting our CASS Audit service 

Affinia now has a growing portfolio of CASS audit clients, and we work closely with them to ensure all client money and custody assets are accounted for, delivering reports that comply with FCA requirements and providing assurance on the safety and security of client funds.  

There are new templates available on MWP to assist you with any CASS audits but please reach out to Michael Warman if there is anything you would like to discuss.  

Internal focus 

Working for Affinia under the Audit service line: 

We are very proud of the team we have working under the Audit banner and thought it would be interesting to hear from one of our newer recruits on their experience so far.   

Aaron Low joined us late last November and is an Audit Senior based in our Stratford office. Aaron said:  

“Working in the Affinia audit team has been an incredibly rewarding experience. All the teams foster a collaborative environment where every member’s insight and expertise is valued, and there’s always an emphasis on continuous learning. We tackle complex challenges together, supporting each other to ensure thorough, accurate audits. It’s motivating to be part of a group that holds itself to the highest standards of integrity and professionalism.”   

That’s all from us this month. If you have any questions about anything covered or need any other support, please get in touch with Richard Lane or Mark Middleton.  

Warm regards from the Audit Team 😊