Private Companies are required by under the corporations act to be external audited once:
- Consolidated revenue for the financial year the company and the entities it controls is $25 Million, or any other amount prescribed by the regulations for the purposes
- The value of the consolidated gross assets at the end of the financial year of the company is $12.5 Million or more
- The company and the entities it controls have 50 or more employees at the end of the financial year.
If two out of three rules are met an audit is required by Corporations Act 2001. Or if 5% of the shareholders request an audit.
While an audit based on the above may not be required, it is good management to review your controls and risk threshold as your company grows. As a private company has a close relationship between its board and its shareholders, it can be difficult for owners who control the day to day running of the business to stand far enough back to see were the weaknesses are. We can step into this role for you to work through and improve any:
- Segregation of duty issues
- Lack of communication between managers
- Strong compliance and responsibility knowledge
- Risk assessments
- Internal control reviews
- Employee reviews