Professional Services

At Grant Thornton we can provide you with the appropriate level of assurance relating to your entity’s financial statements. We can provide three levels of assurance engagement which are as follows:

Full Audit

As with all other Grant Thornton offices around the world, we would perform our audit engagement using the Grant Thornton Voyager audit software. This programme has been developed to ensure a consistent application of auditing standards and to make for as efficient an audit as possible. During such an engagement, we would obtain an understanding of the entity and assess the risk of the financial statements being materially misstated, including the risk due to fraud and non-compliance with any laws or regulations, if any. We would assess systems and controls used in preparing the financial statements and would look at each significant balance in those financial statements. Our audit would be performed under the requirements of International Standards on Auditing which require that an entity’s systems of internal control be documented and assessed during the performance of an audit. We would issue an opinion on the financial statements which would give the owners our professional opinion on the “truth and fairness” of them. Whilst an audit cannot provide a guarantee that the accounts are 100% accurate, the audit process gives as high degree of comfort over the reliability and quality of the accounts as is reasonable.

Limited Assurance engagement

In such an engagement we would seek to gather evidence sufficient to obtain a level of assurance which provides the basis for a negative form of conclusion on the unaudited financial statements. During such an engagement, we would make enquiries of management, and would perform analytical procedures which would help us to determine the areas where further work, including obtaining corroborative evidence, is required and to what extent. We would not be required to document and assess the entity’s systems of internal control which would be required if a full audit were performed.

Compilation Report

When performing such a report we would use our accounting knowledge to collect, classify and present the accounting information provided to us and then summarise that detailed data into a manageable and understandable form. We would not test the assertions underlying that information and we would not express any opinion on the financial statements. In such an engagement, the owners of the entity subject to our report would derive limited comfort from our association with the financial statements due to the requirement that our work be carried out with professional competence and due care and was subject to the ethical and other guidance of the Institute of Chartered Accountants in England and Wales. In such an engagement we would simply compile the financial statements from the information supplied and would not perform any audit procedures and would not express any opinion on them.

Audit Exemption

In respect of audits of companies incorporated under the Isle of Man Companies Acts 1931 to 2004, these are now able to elect to become exempt from the requirements of an audit provided that:

  1. they satisfy two out of the following three criteria in any financial year:
    • Turnover does not exceed £5.6million;
    • Balance sheet total does not exceed £2.8million at any time during that year;
    • It employs no more than 50 persons at any time during that year; or
  2. throughout that year, all its members are directors and it exists wholly for the purpose of holding shares, securities, other investments or land.

If a company is unable to satisfy these criteria or is regulated or listed then it generally must be subject to an audit.

For companies incorporated under the Isle of Man Companies Act 2006, at present there is no requirement for these to be audited, unless they are regulated or listed.

Preparation of Annual Financial Statements

Where permitted by the ethical standards with which we must comply, we can also prepare your entity’s annual financial statements. These ethical standards prohibit us from producing financial statements for listed companies but we are able to produce them for other clients provided that all decisions relating to those financial statements are made by the entity’s management.

In all other engagements not involving listed companies, we are able to assist you in the preparation of annual financial statements in compliance with applicable accounting standards.

If you require further information please contact:

Richard Ratcliffe
E: richardratcliffe@grantthornton.co.im
T: +44 (0)1624 639481
F: +44 (0)1624 662249

Dennis McGurgan
E: dennismcgurgan@grantthornton.co.im
T: +44 (0)1624 639494
F: +44 (0)1624 662249