I am currently carrying out the Audit of a Company (First Year Audit). Turnvoer is over £6.5 million and employees numbers are in excess of 50. Therefore the company is Medium Sized. In prior year the company was below the audit threshold and turnvoer was circa £2million. During the year, the company purchased a dormant company for £1, (simply to use that companys name on its product). Are group/consolidated accounts required even though the subsidiary is Dormant? Note there are no other subsidiaries. Additionally, if group accounts are not required, do I have to make a note disclosure explaining why.
Many thanks for your comments in advance.