Maura Duffy - B. Comm. FCA Partner
The extension of audit exemption to small groups and companies limited by guarantee are to be welcomed. Up to now there was an unnecessary compliance burden placed on these companies.
In our opinion a statutory audit will now also have an enhanced value as companies can choose to have the greater level of assurance which an audit delivers rather than it being a compliance requirement.
It is a regrettable that the requirement to file on time with the companies office is still a condition to avail of audit exemption. The financial penalties for late filing should be a sufficient deterrent rather than the imposition of an audit.
The provisions of the Companies Act 2014 are effective from the 1st June, 2015. With limited exceptions, the accounting and audit related provisions commence for financial statements approved on or after the 1st June, 2015, regardless of the financial periods to which the financial statements relate.
The main provisions of audit exemption are as follows:
The following are the companies that can avail of audit exemption:
The principal conditions for a standalone/ group companies to avail of audit exemption are that:
The qualifying conditions for small companies/groups are satisfied in relation to the financial year in which it fulfils two or more of the following criteria:
The company must also satisfy these conditions for two consecutive financial years.
Companies that cannot avail of the audit exemption are as follows: