"Do I need an audit?" is one of the most common questions we get from growing Fiji businesses, and the honest answer is that it depends on your company's size, structure, and sometimes on what your bank, investors, or grant funder require, not just on Companies Act thresholds alone.
What generally triggers an audit requirement
Company size is set by consolidated revenue under section 19 of the Companies Act 2015: small private companies up to $5 million, medium private companies $5 million to $20 million, and large private companies above $20 million. Public companies and large private companies must have their financial statements audited. Small and medium private companies do not — a medium private company prepares pro forma financial statements, which sit outside the audit requirement. The one route into an audit for a smaller company is a direction from members holding 10% or more of the votes, and even then no audit is required unless the direction asked for one.
Audits triggered by someone other than the Companies Office
Even where the law wouldn't otherwise require it, plenty of Fiji businesses end up needing an audit anyway, because a bank wants audited accounts before extending finance, an overseas parent company's group audit requires it, or a grant or donor funding a non-profit's programme requires audited financial statements as a condition of the funding.
Why "we'll prepare for it when the auditor asks" is the expensive approach
An audit goes much faster, and costs less in professional fees, when the underlying records are already clean, reconciled bank accounts, properly supported journal entries, a chart of accounts that makes sense, and documentation for anything unusual that happened during the year. Businesses that only start organising this once the auditor is already engaged usually spend the first few weeks of the engagement just getting the file audit-ready, which the auditor bills for.
A pre-audit health check changes that
Running an internal review before the formal audit begins, checking that reconciliations are current, control processes are actually being followed, and documentation gaps are closed, means the audit itself focuses on genuine assurance work rather than basic file cleanup. It also means fewer surprises and fewer follow-up queries once the auditor is in.
How Alvin Kumar & Associates helps
We run pre-audit health checks, prepare audit files, review internal controls, and get compliance documentation in order, so when your auditor arrives, they have nothing to query and the process moves quickly.
This article is general information only and does not constitute an assessment of whether your specific company requires an audit. Audit thresholds and requirements are set by the Companies Act 2015 and may be affected by your company's specific classification, bank covenants, or funding conditions. Confirm your specific position with Alvin Kumar & Associates.