STATUTORY AUDITS

DO I NEED A STATUTORY AUDIT?

UK Companies Act 2006 – Audit Exemption Threshold.

For accounting periods ended after 30th September 2012 the auditing rules for exemption were changed so that from that date if the company is small it does not need an audit.

To qualify as a

SMALL COMPANY

it must currently meet at least two of the following conditions

  • The company’s annual turnover must be £10.2 million or less
  • The balance sheet total must be £5.1 million or less
  • The average number of employees during the year must be 50 or fewer.

To qualify as a

 SMALL GROUP

a group must meet at least two of the following conditions:

  • Aggregate turnover must be no more than £10.2 million net (£12.2 million gross)
  • The aggregate balance sheet total must be £5.1 million net (£6.1 million gross) or less
  • The average total number of employees of the group must be 50 or fewer.