DO I NEED A STATUTORY AUDIT?
UK Companies Act 2006 – Audit Exemption Threshold.
Information on the conditions for the audit exemption threshold has been released for companies with accounting periods starting on or after 6th April 2008.
To qualify for total audit exemption, a company must:
- Qualify as small; AND
- Have a turnover of not more than £6.5 million; AND
- Have a balance sheet total of not more than £3.26 million
and the Directors must resolve not to have their accounts audited.
At least two of the following conditions must be met:
- The company’s annual turnover must be £6.5 million or less
- The balance sheet total must be £3.26 million or less
- The average number of employees during the year must be 50 or fewer.
For designation as a ‘small group of companies’, a group must meet at least two of the following conditions:
- Aggregate turnover must be NO MORE THAN £6.5 million net (£7.8 million gross)
- The aggregate balance sheet total must be £3.26 million net (£3.9 million gross) or less
- The average total number of employees of the group must be 50 or fewer.