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Dispense with audit

Dispense with audit

A client company which is well within the audit exemption limits has nevertheless had a voluntary audit for many years. I am fairly certain they have a resolution in place to dispense with the annual appointment of auditors though I need to confirm this.

It is probable that they will not have the accounts audited for the year just ended. What procedures and/or resolutions are necessary? I haven't dealt with this situation before and certainly not since the 2006 Act came in. So I am assuming that the Auditors are deemed to be in post and therefore will need to be removed or will have to resign. Is that correct?

Any help or pointing me in the right direction for guidance (I couldn't find anything on CH website) gratefully received.


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18th Jun 2012 12:05


to check memorandum and articles and change if relevant

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18th Jun 2012 13:35

So, look at the 2006 Act

The relevant sections are ss. 510 to 526 CA 2006.  Do not overlook s.519.

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18th Jun 2012 14:31


I have read the relevant sections and have also now found some useful ICAEW guidance. The simplest solution appears to be to let the auditors remain in office but just not carry out an audit and then resign at the end of their term of office. I will check the M&A as suggested.

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