205B. Dormant company exempt from audit requirements

Question 1

205B. Dormant company exempt from audit requirements

Answer 1

General overview
[205B.01] This section exempts a dormant company from audit requirements. The new s 201A further exempts a dormant company from having to prepare the financial statements. Basically, a dormant company is one where no accounting transaction occurs for a period of time: s 205B(2). In other words, a dormant company does not carry out business activities for quite a while.