05. Accounts and audit. Flashcards
Section 386 of the Companies Act 2006 rquires that every company keeps … accounting records.
adequate
Failure to keep adequate accounting records is punishable by up to …
10 years imprisonment.
Accounting records for a public company must be kept for …
6 years
Accounting records for a private company must be kept for …
3 years
Accounting records for a … company must be kept for 6 years.
public
Accounting records for a … company must be kept for 3 years.
private
The duty to prepare accounts is that of …
the directors.
s. 394 CA 2006
Companies act acounts must give a .. view.
true and fair
T/F: all companies must prepare a strategic report alongside their annual accounts.
FALSE
small companies are exempt.
A public company must file its accounts and reports with the registrar within …
6 months
A private company must file its accounts and reports with the registrar within …
9 months
A … company must file its accounts and reports with the registrar within 6 months.
public
A … company must file its accounts and reports with the registrar within 9 months.
private
In addition to filing its accounts and reports with the registrar, a public company must also …
lay them before members in general meeting, usually the AGM.
The main types of company that can NOT benefit from audit exemption despite being ‘small’ are …
banking and insurance companies.
An audit of an otherwise otherwise exempt company can be demanded by …
10% of members representing 10% of issued share capital.
T/F: all auditors need to be formally re-appointed every year.
FALSE
a private company’s auditors are deemed to be re-appointed.
The main audit exemptions: S* D P S
SMALL companies
The main audit exemptions: S D* P S
DORMANT companies
The main audit exemptions: S D P* S
non-profit-making companies subject to PUBLIC sector audit.
The main audit exemptions: S D P S*
SUBSIDIARIES whose parent company guarantees their liabilities outstanding at the balance sheet date.
The ‘sizes’ of companies in the present UK regime: M* S M L
micro-entities
The ‘sizes’ of companies in the present UK regime: M S* M L
small
The ‘sizes’ of companies in the present UK regime: M S M* L
medium-sized
The ‘sizes’ of companies in the present UK regime: M S M L*
large
T/F: a company is only deemed to have increased size in the second accounting year in which two criteria have changed.
TRUE
The ‘sizes’ of companies in the present UK regime.
micro-entities, small, medium-sized, large
The audit exemption under s.477 of the Companies Act 2006 applies to …
small companies
Small company maxima.
Turnover: £10.2m
Balance sheet: £5.1m
Employees: 50
Micro entity maxima.
Turnover: £632,000
Balance sheet: £316,000
Employees: 10
Medium-sized maxima.
Turnover: £36m
Balance sheet: £18m
Employees: 250
Employees maxima.
10, 50, 250
Balance sheet maxima.
£316,000, £5.1m, £18m
Turnover maxima.
£632,000, £10.2m, £36m
A strategic report is not required for companies that are …
small
If the deadline to file limited company accounts falls on a Sunday or Bank Holiday …
the accounts must nevertheless be RECEIVED by Companies House BEFORE that date.
T/F: micro-entities are not required to file a copy of their profit and loss account.
TRUE
they must nevertheless prepare one for members.
T/F: small companies are not required to file a copy of their profit and loss account.
TRUE
they must nevertheless prepare one for members.
T/F: small companies are not required to file a copy of their directors’ report.
TRUE
they must nevertheless prepare one for members.
