A non-statutory audit is an audit of a company or organisation's business that is not required by either the law or a regulatory agency or authority. In Gibraltar, “small” private limited companies (as defined in the Companies Act), which are neither licensed by the Gibraltar Financial Services Commission or regulated by another local regulatory agency and whose turnover is below the threshold as defined by the Income Tax Act (2016: £1.25M) does not require an audit. Similarly, for companies whose parent undertaking is subject to the laws of Gibraltar or an EEA State.
Not all businesses need an audit but should you avoid auditors at all costs?
- If you are a growing business, or are considering a sale or flotation, an audit could help you ensure you have your financials in order and are more appealing to investors.
- If you are an investment manager of a private fund you would see medium to long term benefits in an audit by building a track record towards being licensed in the future and be open to outside investors.
- If you are a charity you may be required to engage in a non-statutory audit in order to satisfy the needs of donors or grantors verifying the effectiveness of your financial activities.