8

Question 1

Companies never exempt from Audit

Answer 1

• public company (unless dormant)
• banking company
• insurance company
• MiFID investment firm / UCITS
• regulated market
• public sector entity

Most sub exempt as long as parents gurantees their liabilities

Question 2

Charities Audit Required

Answer 2

England and wales:
- gross income > £1M or
- gross asset > £3.26m and gross income over £250k or
- due to donors / trustee preference
Indenpendent examination required if not audit unless gross income below 25k

Scotland:
- Gross income > £500k or
- Gross assets > £3.26m or
- same as 3rd for England and wales
Independent examination required if no Audit

Question 3

SH veto

Answer 3

Members in aggregate who hold more than 10% can veto the audit exemption. Provided they do so no later than one month before end of year financial year in question

Question 4

Filing requirement for audit exempt

Answer 4

Director must include additional narrative section in the B/S

1. Statement SH not required an audit using the SH veto
2. Statement company entitled to audit exemption
3. Acknowledgment director’s responsibilities to maintain proper accounting records and true and fair
4. Statement of accounts been prepared following the special provisions of CA 2006 for small companies