Intro

Question 1

Companies Act 2006 exempts small private companies from mandatory audit if they satisfy two out of which three criteria?

Answer 1

No more than 50 employees
Turnover not more than £10.2m
Gross assets no more than £5.1m

Question 2

Do subsidiary companies require an audit?

Answer 2

Not if their parent companies guarantee their liabilities.

Question 3

Which types of companies require an audit even if they meet exemption criteria?

Answer 3

Insurance companies, banks, Plcs, and where shareholders owning at least 10% of the shares ask for an audit.