Audit Exemption

Portandy

Hi,

I started a company last year who do not have their accounts audited under section 249a.

We have moved payroll etc to a new accountants. They have pointed out to me that we should be having our accounts audited as we are part of a group.

Please can somebody advise if we should be audited and where I can find a list of exemptions under 249a.

Our company turns over about £1m
8 staff
Part of a group that turns over £100m around the world.

Many thanks for your help.

Steve Collings

Hi,

Yes your company should be audited because you are part of a "large" group. You can apply FRSSE and claim small companies exemption (and prepare abbreviated financial statements) but you cannot claim audit exemption. Only 'small' groups can claim audit exemption.

Kind regards

Steve

Portandy

Thanks Steve,

What is an FRSSE and what do you put in abreviated accounts.

Steve Collings

FRSSE is the Financial Reporting Standard for Smaller Entities. You have given your turnover as £1m so provided your balance sheet total is not more than £3.26 million (fixed asset + current assets) and your employee numbers are less than 50 AND this has been the case for the last 2 years then you can apply it. It basically allows companies to take advantage of reduced disclosures but if your accountants prepare your financial statements, they will deal with this for you.

Abbreviated financial statements are those which are filed at Companies House and are simply an abbreviated balance sheet with a few notes. Again, 'small' companies can take advantage of the reduced disclosures, but under the Companies Act rather than FRSSE (accounts filed at Companies House are not required to give a 'true and fair' view as opposed to FRSSE financial statements).

Kind regards

Steve