Audit Exemption

UK Subsidiary - Swiss Parent

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I would just like to double check with regards to the Audit Exemption rules and if an audit exemption is applicable.

The UK subsidiary operates in the UK and only trades with its parent. The parent company is in Switzerland, is the UK Audit exempt already or is it only exempt in the circumstances that the parent company provides a guarantee of all outstanding liabilities at the end of the financial year?

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By Mike Bath
31st Mar 2017 15:07

The first question is: what is the size of the total group? (i.e. your company, plus the Swiss parent, plus any other group companies anywhere in the world.)

If the total worldwide group is small within Companies Act definitions, then your company is audit exempt subject to the agreement of the members.

If the group is not small then your company has an audit requirement, regardless of the size of the individual company. The guaranteed subsidiary exemption under s479A is still available, provided you can meet the qualifying conditions.

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