What should a finance director look for in a UK statutory auditor?

Choosing a statutory auditor is not just a compliance decision.

For a finance director, the right auditor can make the year-end process smoother, reduce disruption for the finance team, and give the board more confidence in the numbers. The wrong fit can make the audit feel harder than it needs to be.

This is especially important for growing UK businesses. Some companies need a statutory audit for the first time because they have crossed the audit threshold. Others may be reviewing their current audit arrangements because their business has grown, changed structure, taken on investment, expanded overseas or become more complex.

If your business needs a UK statutory auditor, here are the main things to look for.

First, check that the firm is a registered auditor

A statutory audit must be carried out by a registered auditor.

That may sound obvious, but it is still the right place to start. A statutory auditor is not simply an accountant who can review your figures. The firm must be registered to carry out audit work and have the necessary professional oversight, controls and experience.

Before appointing an audit firm, you should check:

• Whether the firm is registered to carry out statutory audit work
• Who will sign the audit opinion
• Whether the firm has Responsible Individuals who can sign off audits
• Whether the firm has experience with businesses of your size and type

For most finance directors, this is not just about ticking a regulatory box. It is about confidence. You need to know the audit will be properly planned, properly reviewed and properly signed off.

Look for experience with businesses like yours

A statutory audit is not the same for every company.

A straightforward trading company is different from a group with subsidiaries. A property business is different from a technology company. A business with stock, overseas entities, complex revenue recognition, grant funding, or external investors will need a different level of audit planning than a simpler company.

That is why sector and company-size experience matter.

A good statutory auditor should understand the kind of issues that are likely to affect your business. They should know where the risk areas normally lie, what documentation is likely to be needed, and how to plan the audit so that time is spent where it matters most.

For finance directors, this can make a noticeable difference. You do not want to spend half the audit explaining the basics of your business model. You want an auditor who can get up to speed quickly, ask relevant questions and focus on the areas that need attention.

Make sure the firm can handle your size and complexity

Some companies outgrow their first accountant. Others find they need a more personal service than that provided by very large firms.

For finance directors of UK businesses with turnover up to around £500 million, the right fit is often a firm with the capacity to handle substantial audits, but without a remote or over-standardised approach.

You may want to ask:

• Has the firm audited businesses of a similar size?
• Can it work with groups and subsidiaries?
• Does it understand your reporting deadlines?
• Can it coordinate with overseas or group auditors if needed?
• Will senior people stay involved throughout the process?

This is one of the reasons many growing businesses look beyond the largest audit firms. The issue is not whether bigger firms are good at what they do. It is whether your business will get the attention, flexibility and senior involvement it needs.

Ask who you will actually deal with

This is one of the most important questions.

When you appoint a statutory auditor, you are not just appointing a firm name. You are appointing the people who will plan the work, ask questions, review evidence, speak to your finance team and present the findings.

So ask who will be responsible for your audit.

Will a director or partner lead it? Will you have access to senior auditors when you need them? And will the team understand your business from year to year, or will you need to start again each time?

For an FD, continuity matters. A good audit relationship becomes more efficient over time because the auditor understands your systems, reporting cycle, pressure points and internal team.

That does not mean an auditor should become too close or lose independence. It means the working relationship should be professional, informed and practical.

Look for clear communication before the audit starts

A smooth audit depends heavily on preparation.

Before work begins, your statutory auditor should explain what they need, when they need it, and how the process will run. They should agree a timetable with you and be clear about responsibilities on both sides.

This matters because audit delays are often caused by avoidable uncertainty. The finance team may not know what evidence is needed. The auditor may be waiting for information that has not been requested clearly. Senior management may only become involved when an issue has already slowed the process down.

A well-run audit should not feel like a series of surprises.

Instead, clear communication with your auditor should include:

• The audit timetable
• Key risk areas
• Information requests
• Site visits or remote work
• Expected board or management input
• Likely reporting points
• Deadlines for draft and final accounts

If you are changing auditor, communication is even more important. The new firm needs to understand the previous audit position, your accounting policies, any historic issues and the reason for the change.

Choose an auditor who is firm but fair

An auditor must be independent, so challenge is part of the job. They need to test the numbers, ask for evidence and apply professional scepticism.

A good statutory auditor will be firm where necessary, while explaining what they need and why. This helps your finance team resolve queries quickly, without the audit becoming more difficult than it needs to be.

For FDs, that balance matters. The audit needs to be robust, but it also needs to work in the real world of deadlines, reporting pressures and busy finance teams.

Think about the value beyond the audit report

The audit opinion is the formal output. It matters, but it is not the audit’s only source of value.

A well-run audit can also help you:

• Improve internal controls
• Spot weaknesses in systems or processes
• Identify errors before they become larger problems
• Give shareholders, lenders and investors more confidence
• Support better management decisions
• Prepare for growth, sale, investment or group reporting

For FDs, this can be particularly useful. You may already know where some of the problems are. Perhaps month-end reporting is too slow. Maybe stock controls need attention. The business might have grown faster than its finance processes.

A good statutory auditor will not run your business for you, but they should be able to highlight issues clearly and constructively.

Make sure the audit approach fits your team

Every finance team works differently.

Some have a large in-house department with well-developed reporting systems. Others rely on a small team that’s under heavy pressure. Some businesses use cloud accounting software effectively. Others have more manual processes, legacy systems or group reporting packs to manage.

Your statutory auditor should take time to understand how your finance team works.

That does not mean lowering standards. It means planning the audit properly. The auditor should know what information is easy to produce, what may take longer, who needs to be involved and where the main risks are to be found.

For a first audit, this is especially important. Your team may not know what to expect. A supportive auditor can make the process much less daunting by explaining what is needed and helping you to prepare in good time.

Ask about timing and availability

Audit timing can be a major issue for finance directors.

You may have board reporting deadlines, bank reporting requirements, group consolidation deadlines or Companies House filing dates. If the audit runs late, it can create pressure across the business.

Before appointing a statutory auditor, ask how the firm manages timing.

Useful questions include:

• When can the audit start?
• How long is the process expected to take?
• Who will manage the timetable?
• How quickly will queries be raised?
• How will delays be handled?
• Will senior people be available at key points?

The answer should be practical rather than vague. No auditor can promise that every issue will be resolved instantly, but they should be able to explain how they keep work moving.

When should a business speak to an auditor?

Ideally, before the audit is urgent.

If your company is approaching the statutory audit threshold, planning ahead can make the first audit much easier. The same applies if your business is growing quickly, joining a group, seeking investment, expanding internationally or considering a sale.

Early advice can help you understand what records, controls and processes may need attention before the audit starts.

It can also help you avoid a rushed appointment, where the decision is driven mainly by availability rather than fit.

How THP can help

THP provides statutory audit services for growing UK businesses, including privately owned companies and groups.

Our audit team has been helping businesses since the 1980s. We combine technical audit experience with a personal, flexible and attentive service, giving clients direct access to senior auditors throughout the process.

Most of our audit clients are privately owned companies with turnover up to around £200 million, and we also act as joint auditors for larger businesses. Our approach is designed to be thorough, practical and collaborative, with clear communication from planning through to completion.

We understand that an audit can place pressure on a finance team. That is why we aim to make the process as smooth as possible, while still giving you the assurance, challenge and insight you need.

If your business needs a statutory auditor for the first time, or you are thinking about changing auditor, THP can help you understand your options and plan the next step.

Speak to THP’s audit services team to find out how we can help.