Manufacturing Audit

For manufacturers, the audit lives or dies on stock: counts, valuation, overhead absorption and work in progress. Our team audits production companies, engineers and industrial groups, attending counts, challenging costing assumptions and testing the judgements that actually move your margin — while our tax specialists make sure capital spending and development work claim every relief available.

Manufacturing Sector Expertise

We audit production and process manufacturers, engineering and precision manufacturing firms, industrial and heavy manufacturers, food and beverage producers, pharmaceutical and medical device manufacturers, and automotive and component makers. Many are UK subsidiaries of overseas industrial groups — we deliver both the UK statutory audit and the group reporting pack, and our ERP experience spans SAP, Oracle, Microsoft Dynamics and Sage X3.

Inventory and Work in Progress

We attend and observe physical stock counts (including perpetual inventory regimes across multiple sites), test count accuracy and cut-off, and audit valuation across raw materials, WIP and finished goods. That means challenging standard costs and variance capitalisation, overhead absorption rates against normal capacity, net realisable value on slow-moving and obsolete lines, and completion percentages on WIP. Where long-term contracts exist, we test revenue and margin recognition over time against contract terms and stage of completion.

Fixed Assets and Capital Investment

Plant and machinery dominates the manufacturing balance sheet, so we audit capitalisation policies, useful lives and impairment indicators with care. Just as importantly, we connect the audit to tax: full expensing gives companies 100% first-year relief on new main-rate plant and machinery, the Annual Investment Allowance stands at a permanent £1m, and a new 40% first-year allowance applies from January 2026 — while the main-rate writing-down allowance falls from 18% to 14% from April 2026, making claim timing genuinely valuable. Our audit and tax teams work from the same asset data, so nothing is claimed twice or missed entirely.

R&D, Innovation and the Audit

Manufacturers developing new products and processes frequently qualify for R&D relief under the merged scheme — a 20% expenditure credit — with loss-making R&D-intensive SMEs able to access enhanced support. The audit evidence we gather on projects, staff costs and materials often overlaps heavily with R&D claim substantiation; coordinating the two saves your engineers repeating themselves and strengthens claims against HMRC scrutiny.

Broader Audit Focus Areas

Beyond stock and assets, manufacturing audits focus on supply chain and procurement controls, warranty and returns provisions, energy and input-cost pressure in going concern assessments, foreign currency exposure on imports and exports, and covenant reporting for asset-based lending and invoice finance facilities common in the sector.

Why Choose Acumon for Manufacturing Audits

Sector-experienced teams that plan around production schedules and count calendars, fieldwork designed to keep disruption off the factory floor, fixed transparent fees, clear actionable findings, and one firm covering audit, R&D, capital allowances and wider tax. Straightforward answers from people who understand how a costing system actually works.

What You Get With Acumon

• Production, engineering, industrial, food, pharmaceutical and automotive manufacturers
• Stock count attendance across single and multi-site perpetual inventory regimes
• Raw materials, WIP and finished goods valuation, including standard costing and absorption
• Fixed asset audits aligned with full expensing, AIA and first-year allowance claims
• Long-term contract revenue and margin recognition
• Warranty provisions, supply chain controls and going concern under cost pressure
• Coordination with R&D relief claims under the merged scheme

Why Acumon for Manufacturing Audit?

• ICAEW-registered and FRC-authorised audit firm
• ERP experience across SAP, Oracle, Microsoft Dynamics and Sage X3
• Integrated R&D, capital allowances and tax advisory alongside audit
• UK subsidiary audits and group reporting packs for overseas industrial groups
• Uses the Inflo digital audit platform and a specialist client audit portal

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.