01243 776938
info@jamestoddandco.co.ukSPECIALIST INDUSTRIES
Outsourced Audit Services for Accountants
If your accountancy firm has clients that require an audit but you do not hold audit registration, James Todd & Co can work alongside you as an independent audit partner.
We provide audit services for accountants who want to retain their valued client relationships without taking on the regulatory responsibilities associated with delivering audits themselves.
A Different Approach to Audit
Maintaining audit registration requires continued investment in people, training, systems, quality management and regulatory compliance. For firms with a limited audit portfolio, maintaining registration is not always commercially practical.
Our outsourced audit services provide an alternative. James Todd & Co undertakes the independent audit while your firm continues providing the other agreed services to the client, subject to the relevant independence requirements.
This allows you to retain the wider client relationship without maintaining audit registration solely for a small number of engagements.
Contact James Todd & Co to discuss how an audit referral could work.
Keep Your Client. We Provide the Independent Audit
Accountancy firms often build strong client relationships through regular accounts, tax and advisory work. When one of those clients requires an audit, referring them to another full-service accountancy firm may create concerns about the wider relationship.
James Todd & Co provides a clearly defined solution. We act as the appointed independent auditor, while your firm remains the client’s adviser for the other services it is permitted to provide.
Our role is to:
- Undertake the independent audit
- Communicate clearly with the client and its management
- Work with the referring accountant throughout the audit
- Agree responsibilities and information requirements
- Respect the existing professional relationship
- Maintain the independence required of the appointed auditor
The services provided by each firm will be agreed before the engagement begins. This will depend on the client, the work your firm undertakes and the applicable ethical and independence requirements.
Audit Services Available Through the Partnership
James Todd & Co accepts referrals for a range of audit requirements. Each prospective engagement is considered individually based on the organisation, the audit requirement, the proposed timetable, our independence and our capacity to undertake the work.
Statutory Audits
A company or organisation may require a statutory audit because of its size, legal status, group structure or another applicable requirement.
James Todd & Co is authorised by the Institute of Chartered Accountants in England and Wales to carry out statutory audit work in the UK. We work with the client and referring accountant to confirm the requirements and plan the audit.
First Time Audits
A first-time audit can be required when a company exceeds an audit threshold, joins a group or needs audited financial statements for another reason.
These audits can require additional planning, particularly when reviewing opening balances, comparative information and records from earlier periods. Contacting us early gives us time to assess the requirements and proposed timetable.
Group and UK Subsidiary Audits
We undertake audits for groups and UK subsidiaries of overseas companies.
Before accepting an engagement, we consider the group structure, reporting framework, deadlines and communication requirements. We can then agree how the audit will be coordinated with the client, referring accountant and other relevant parties.
Charity and Not for Profit Audits
Charities and not for profit organisations may require an audit because of their income, assets, governing documents or funding arrangements.
Our team works with management, trustees and the referring accountant to confirm the reporting requirements and organise the audit.
Other Audit and Assurance Requirements
James Todd & Co also provides business audit services and regulatory audit services.
Whether we can accept an engagement will depend on the organisation, the work required and whether it falls within our experience and registration.
If you are unsure what your client requires, contact our audit team for an initial discussion.
Why Accountancy Firms Partner With James Todd & Co
Retain Clients Who Require an Audit
The need for an audit does not have to bring an established client relationship to an end.
Your firm retains the wider client relationship and continues providing appropriate accounts, tax, payroll, VAT and advisory services while James Todd & Co undertakes the audit.
Avoid Maintaining Audit Registration for a Limited Portfolio
Maintaining audit registration requires investment in people, training, systems and regulatory compliance.
Outsourcing the audit may be a more practical option for firms with only a small number of audit clients.
Give Clients Access to a Dedicated Audit Team
Audit remains a core specialism for James Todd & Co. We continue to invest in the expertise, systems and quality processes needed to provide audit services.
Each engagement is planned around the organisation, its reporting responsibilities and the applicable audit requirements.
Work With an Independent Firm
We understand the importance of the relationship between an accountancy firm and its client.
Our role is clearly defined around the audit engagement, and we work with the referring accountant throughout the process.
Provide a Clear Solution for the Client
The client retains access to an accountant who already understands its business while also receiving an audit from a separate registered firm.
Each adviser has a clearly defined role. This can help the client understand who is responsible for the audit and who continues to provide its other financial and business services.
Trust us we’re Xero experts
What we offer at a glance
Independence, Confidentiality and Client Relationship Protection
Auditor Independence
James Todd & Co must remain independent and objective as the appointed auditor.
Before accepting an engagement, we review the relationships and services involving the client, the referring accountant and James Todd & Co. Any matter that could affect our independence must be considered before the audit proceeds.
Clear Service Boundaries
We agree the services each firm will provide at the beginning of the relationship.
The referring accountant may continue providing appropriate non-audit services where these are compatible with the audit and the relevant professional requirements.
Professional Communication
We agree the main contacts, responsibilities and communication arrangements for the audit.
James Todd & Co will communicate directly with the client where required and work with the referring accountant where appropriate. We will also report relevant audit findings to management and those charged with governance.
Confidentiality
Information received during a referral or audit engagement will be handled in accordance with our professional and legal responsibilities.
We will explain what information is required and when the client’s permission is needed before that information is shared.
Audit Services for Accountants Across the UK
If you have a client requiring a statutory audit, first-time audit, charity audit, group audit or UK subsidiary audit, speak to James Todd & Co about how we may be able to support you.
Your client relationship stays with you. We provide the independent audit.
Submit an audit partnership enquiry or call James Todd & Co to arrange a confidential discussion.
Audit Services for Accountants FAQs
Can My Accountancy Firm Retain the Client if James Todd & Co Conducts the Audit?
The service is designed to allow your firm to retain the wider client relationship while James Todd & Co acts as the independent auditor.
Your firm can continue providing appropriate non-audit services, subject to the independence requirements that apply to the engagement.
Is This a White Label Audit Service?
We must be formally appointed and clearly identified as the independent auditor. This allows your firm to retain the wider relationship while ensuring that the audit responsibilities remain clear.
Can James Todd & Co Audit Accounts Prepared by Our Firm?
This may be possible, depending on the client, the work your firm has completed and the applicable independence requirements.
We will review how the accounts were prepared and what other services your firm provides before confirming whether we can accept the engagement.
What Information Do You Need Before Accepting a Referral?
We need an overview of the organisation, its activities, ownership, financial year end, reason for the audit and proposed reporting timetable.
We will also need to understand the services your firm provides and whether there are any known accounting or reporting issues.
How Do You Protect Our Client Relationship?
We agree the responsibilities, service boundaries and communication arrangements before the audit begins.
James Todd & Co focuses on the audit engagement and works professionally with the referring firm. Our legal, ethical and professional responsibilities as the appointed auditor will continue to apply.