Group Audits

Group audits fail on coordination, not technique: late component reporting, inconsistent accounting policies and duplicated requests. As group auditor we run the whole engagement to a single timetable under ISA (UK) 600 (Revised), direct component auditors clearly, and keep intercompany eliminations, currency translation and goodwill from becoming last-minute surprises.

When Does a Group Need an Audit?

A parent company must prepare group accounts and have them audited unless the group qualifies as small. For financial years beginning on or after 6 April 2025, a small group is one meeting two of three limits: aggregate turnover of £15m net (£18m gross) or less, aggregate balance sheet total of £7.5m net (£9m gross) or less, and 50 or fewer employees. Groups containing a public company or certain regulated entities are ineligible regardless of size.

Within a group that is audited, individual UK subsidiaries may still escape their own statutory audit — either by qualifying as small or via the parent guarantee exemption under section 479A of the Companies Act 2006. Choosing the right combination can remove significant cost; we map the options across your structure as part of planning.

Group Audit Services

Consolidation audits — audits of consolidated financial statements, ensuring accurate consolidation of group entities, elimination of intercompany transactions and compliance with IFRS or UK GAAP consolidation requirements.

Parent company and subsidiary audits — statutory audits ensuring Companies Act compliance for the parent, plus UK and international subsidiary audits serving both local compliance and group reporting needs.

Intercompany transaction reviews — verification of intercompany balances and transactions, accurate elimination on consolidation, and alignment with transfer pricing documentation.

Group reporting support — consolidation adjustments, group reporting packs and multi-jurisdictional regulatory reporting.

Component audit coordination — acting as group auditor under ISA (UK) 600 (Revised), directing component auditors with clear instructions, materiality allocations and review of their work.

International Group Structures

We audit multi-tier structures with several subsidiary levels, cross-border groups requiring multi-country coordination, holding company structures in the UK, Jersey, the Isle of Man and internationally, joint ventures and associates with equity accounting, regulated group entities in financial services, and listed groups requiring enhanced procedures. For UK subsidiaries of overseas parents we deliver both the UK statutory audit and the group reporting pack to the parent's timetable and framework.

Accounting Standards and Consolidation

IFRS consolidation — expertise across IFRS 10 (Consolidated Financial Statements), IFRS 11 (Joint Arrangements) and IFRS 12 (Disclosure of Interests in Other Entities). UK GAAP consolidation — FRS 102 group accounts, including groups mixing FRS 101 and FRS 102 frameworks. We also handle foreign currency translation, goodwill and intangible asset recognition on acquisition, and fair value adjustments — the technical areas where group audits most often stall.

Multi-Jurisdictional Regulatory Compliance

We ensure compliance with UK Companies Act requirements, Jersey and Isle of Man regulations through our Recognised Auditor status in both islands, listing rules and corporate governance requirements for quoted groups, and sector-specific regulation. One firm covering three jurisdictions means fewer auditors to brief, one engagement letter and a single point of accountability.

Group Audit Process

Our process: 1) group structure analysis and exemption mapping, 2) audit planning with component scoping and materiality, 3) component audits and instructions, 4) consolidation review, 5) group financial statements audit, 6) reporting to the board and audit committee, 7) ongoing support between year ends.

What You Get With Acumon

• Consolidation audits under IFRS and UK GAAP
• ISA (UK) 600 (Revised) component auditor coordination across jurisdictions
• Advice on small-group exemption and s479A subsidiary audit exemptions
• Parent company, subsidiary and intercompany transaction audits
• UK subsidiary audits and group reporting packs for overseas parents
• Currency translation, goodwill and fair value on acquisition
• UK, Jersey and Isle of Man coverage from one firm

Why Acumon for Group Audits?

• Recognised Auditor status in Jersey and the Isle of Man plus UK ICAEW registration
• FRC-authorised for PIE audits within listed groups
• IFRS 10/11/12 and FRS 102 consolidation expertise
• Audit portfolio includes 10 listed entities including Sharp Electronics, Linguaphone and Kuoni
• Only £37k short of the top 100 in the Accountancy Age 50+50 list for 2024

Get a Fixed-Fee Quote

Tell us what you need and we'll come back within one business day with a clear scope and a fixed price — no hourly-rate surprises. Call 020 8567 3451 or use the form and we'll be in touch.