"Audit" - It's one of the most dreaded words in business but did you know that the majority of small businesses can avail of an exemption from the Statutory Requirement to engage Independent Auditors to examine their year end accounts ?
Can my company avail of this exemption ?
Yes if your company can satisfy all of the following conditions :
- Annual Turnover of less than €8.8 million
- Balance Sheet Total of less than €4.4 million
- 50 or fewer Employees- Annual Turnover of less than €8.8 million
- Balance Sheet Total of less than €4.4 million
- The company's Companies Office (CRO) filing record is fully up to date, and it has filed its last Annual Return (B1) on time.
The above conditions must be met for both the current year and the preceding year to qualify unless you are in the first year of trading.
Also your company must not be:
- A Holding or Subsidiary Company
- A Company "Limited by Guarantee"
- A Bank, Investment, Insurance or Management Company
Make sure you also check your current bank agreements as sometimes your bank may have stipulated that you have an audit as part of their conditions. Also any shareholder holding 10% or more can request that the company be audited.
So what next?
The company's directors will still be required by Company Law to keep proper books and records and to prepare annual accounts that comply with Accounting Standards and the Companies Act.
Most companies will continue to use the services of an accountant to prepare their annual accounts. Although no detailed audit will be required these accounts will still be reviewed for accuracy and completeness.
There are no changes to your company tax requirements and a Corporation Tax Return (CT1) will still need to be prepared and filed each year.
Can we lose our exemption?
Yes you can lose your exemption automatically at any time if you break any of the above conditions. Therefore it's essential that you ensure that your Companies Office Annual Return B1 is filed on time. If it's filed late you must undergo an Audit for the current year and also the following financial year.
Benefits for your Business
Audit exemption saves you money, time, resources and stress so talk to your accountant today about availing of this option for your business.
