Most small private limited companies don’t need an audit of their annual accounts
If your company financial year ends on or before 30 September 2012 your company may qualify for an audit exemption if your company meets both the following:
- has an annual turnover of no more than £6.5 million
- has assets worth no more than £3.26 million
If your company financial year ends on or after 1 October 2012 your company may qualify for an audit exemption if your company meets 2 of the following:
- has an annual turnover of no more than £6.5 million
- has assets worth no more than £3.26 million
- has 50 or fewer employees on average
It must be noted that even companies exempt from an audit must still arrange for the accounts to be audited if shareholders who own at least 10% of shares (by number or value) require this.
Companies that must have an audit
Some companies must have an audit even if they meet the rules for not having one.
Your company must have an audit if at any time in the financial year if it’s been:
- 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