The rules governing which companies are required to have an audit have changed. For company year ends ending on or after 1 October 2012, a company may qualify for an audit exemption if it can satisfy 2 out of the following 3 criteria:
- has assets worth no more than £3.26m
- has an annual turnover of no more than £6.5m
- has on average fewer than 51 employees
However, even if a company qualifies for an exemption based on the above criteria, it may still be required to undertake an audit if:
- a shareholder owning at least 10% of the shares requests one or the company falls into one of the following categories:
- a public company (unless it’s dormant)
- a subsidiary company (unless it qualifies for an exception)
- an authorised insurance company or carrying out insurance market activity
- involved in banking or issuing e-money
- a Markets in Financial Instruments Directive (MiFID) investment firm or an Undertakings for Collective Investment in Transferable Securities (UCITS) management company
- a corporate body and it shares have been traded on a regulated market in a European state
Finally, some ‘exempt’ companies will elect to continue the audit process as they may believe it helps with access to finance, investment decisions and general PR.
To discuss your audit options, contact Anna Madden, Curo’s head of audit on [email protected] or call Anna on 01527 558539.
Curo Chartered Accountants June 2013