Audit and Assurance

An audit provides an independent and objective evaluation of your financial statements and processes. It ensures compliance with regulations, enhances stakeholder confidence, and offers valuable insights to support informed decision-making.

At RSM, we take the time to understand your unique operations, challenges, and ambitions. By combining world-class technology with real-world experience, we deliver a seamless, high-quality audit experience tailored to your specific sector and needs.

We offer a range of external audit services, including:

• Statutory and non-statutory audits
• Global, listed, and group audits
• Regulated entity audits (e.g., insurance, funds, gaming)
• Special purpose audits

All external audits are performed in accordance with International Standards on Auditing (ISAs).

Statutory Audit: A mandatory audit required by law or regulation to ensure compliance.

Voluntary Audit: An audit conducted at the request of a business to provide additional assurance to stakeholders, such as investors or lenders.

Gibraltar companies require a statutory audit where one or more of the following are met:

• If it is a publicly listed company     
• If it is a regulated entity (e.g. licensed by GFSC, Gambling Commisioner, or equivalent regulators);
•  If large company as defined by the Companies Act 2014, a full audit is required. An audit is also required for medium sized company, but the profit or loss can be abridged. The classification of the size is defined in the reference below. 
•  If company has assessable income of ≥ £1.75 million (this threshold applies for companies with periods ended on/after 1 July 2024)
•  A parent company that prepares the consolidated financial statements, unless it qualifies for an exemption (e.g., being part of a larger EEA group or being a small group).

Companies Act:

The Companies Act mandates an independent audit for companies licensed by the GFSC or equivalent regulators.

Company Classification & Filing Obligations

Companies are grouped by size—micro, small, medium, or large—based on 2 out of 3 criteria: turnover, assets, and employee numbers over two consecutive years.

Micro & Small: File an abridged balance sheet; may qualify for audit exemption.

Medium: Full accounts but profit & loss can be abridged; audit usually required.

Large & Public: Full audited accounts, including:

Balance sheet, profit & loss, notes, directors’ report, auditor’s report. 

A statutory consolidated audit is required if they have exceeded the threshold and does not fall under the exemption as required by Companies Act 2014 (see reference/threshold below). 

They are also required for public parent companies. 

Tax office:

Companies with assessable income ≥ £1.75 million (for periods ending on/after 1 July 2024):

Group Accounts – Consolidation Requirement

The Act requires a parent company to prepare consolidated financial statements when it has subsidiaries, unless it qualifies for an exemption (e.g., being part of a larger EEA group or being a small group).

Thresholds for large groups (based on two out of three criteria):

Turnover > £36 million

Total assets > £18 million( Net)

Employees > 250

Only groups meeting at least two criteria for two consecutive years must prepare consolidated accounts under the Act.

A parent may be exempt from preparing consolidated accounts if it qualifies as a small group, similar to size criteria for individual companies. However, if exemptions are claimed, the usual audit exemptions (if permitted) may still apply at the group level.

Risk Advisory services help businesses identify, assess, and manage risks effectively. By balancing risk and reward, we protect your assets, reputation, and future growth. Our bespoke solutions are designed to align with your risk appetite and regulatory requirements.

Our Risk Advisory services include:

• Internal audit and risk management
• Governance, risk, and compliance (GRC)

Specialised assurance services go beyond traditional audits to meet specific stakeholder needs. 

These include:

• Limited review engagements (e.g., ISRE 2400 and ISRE 2410)
• Agreed-upon procedures (e.g., ISRS 4400)
• Other assurance engagements (e.g., ISAE 3000)

These services provide independent verification to enhance confidence and support strategic objectives.

A limited review engagement provides a moderate level of assurance on financial statements or interim financial information. It is less extensive than a full audit but still offers credible, independent verification.

AUP engagements involve performing specific procedures agreed upon by the client and other stakeholders. These engagements provide factual findings without expressing an opinion or assurance.

All our audit and assurance services are conducted in accordance with relevant international standards, such as:

• International Standards on Auditing (ISAs)
• International Standard on Review Engagements (ISREs)
• International Standard on Related Services (ISRSs)
• International Standard on Assurance Engagements (ISAEs)

By partnering with RSM, you gain:

• Confidence in your financials and processes
• Insights to make informed, future-focused decisions
• Tailored solutions that align with your business goals
• A seamless, high-quality audit experience

To learn more or connect with our team reach out to us directly. Our experts are ready to help you gain the confidence to lead your business into the future.