For financial years that begin on or after 1 January 2016
Your company may qualify for an audit exemption if it has at least 2 of the following:
- an annual turnover of no more than £10.2 million
- assets worth no more than £5.1 million
- 50 or fewer employees on average
The previous rules (last updated after 1st October 2012) you will not require an audit if you are a private limited company and meet at least two of the following size criteria:
- your turnover is less than £6.5m
- your assets are less than £3.26m
- you have less than 50 staff
- Any member of group of members (members being shareholders), not less than in aggregate than 10% in nominal value of the company’s issued share capital, lodge a formal request that an audit be carried out, no later than one month before the end of the company’s year end.
- If the company was at any time during the financial year either i) a public company, ii) a banking or insurance company, iii) an e-money issuer, iv) a MiFID investment firm, v) a UCITS management firm or vi) carries on insurance market activity.
- If the company at any time during the year part of a group or a group requiring an audit.
- You will receive an accurate account of your true financial position.
- Potential highlight and identification of any potential areas of internal control or process weaknesses in your business and advise you on appropriate remedial action.
- You have a registered auditor professionally documented basis for future finance applications, reports etc.
- You have peace of mind of knowing your accounts are in full compliance statutory requirements.
- The overall image and reputation of your business is greatly enhanced by your being able to present audited accounts to your investors, bank or other third parties.