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Audit requirement

Co A  directors X & Y, between the various share classes own all shares between them  T/over =3.5m B/sheet net assets = 500k

A Note in the accounts shows an amount,   owed by group undertakings [ debtor 300k]

Accounts are unaudited, & prepared by a top 20 firm

Co A files own CT  tax return

Directors X& Y have several other joint businesses...... and X has additional outside director + shareholder interests

Not sure how to put a Group together if applicable ?

Should Co A in fact be audited, as part of a group, note was a bit of a giveaway surely ? & what are current audit requirements in these circumstances?

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07th Jun 2012 09:18

If the group is small, there is no requirement to prepare group accounts. 

Criteria, 2 out of 3 of the following, for group:

1. Turnover <£7.8m (£6.5m net, i.e. removing all intra group transactions)

2. Total assets <£3.9m (£3.26m net, i.e removing all intra group balances

3. Employees <50.

These criteria would have to be breached (i.e exceeded) for 2 years in a row before the group becomes medium sized.

SA

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07th Jun 2012 09:47

And if the group is small ...

... there is no requirement for the accounts of parent or subsidiary companies to be audited.

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am i being thick?

If all the shares of company A are owned by the directors (X&Y) how can there be a group company debtor?  Surely there isnt a group?

Associated companies yes, but I'm not seeing a group :S

probably just being thick.......

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07th Jun 2012 13:23

If they have a subsidiary, that would be a group undertaking...

SA

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Doh!  Thanks SA - sometimes I

Doh!  Thanks SA - sometimes I surprise myself!

As I suspected, I was being thick.

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07th Jun 2012 17:58

My pleasure!

If I had a pound for every time I said Doh!.........

SA

 

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