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Who can audit?

I am the FD of a small UK company (meeting the Co House requirements); we are 100% owned by an EU company and are part of what would be (under UK legislation) a medium sized Group.

My questions are:

1. Are we required to have a audit? (I believe yes as we are part of a medium Group?)

2. We are already audited by our EU Parent Co's auditor who complete the audit of the Group and prepare the final individual company and Group consolidated statements; would this audit 'count' or do we require a separate audit by a UK registered auditor?

Thanks for any help or guidance in advance.


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By johnt27
27th Mar 2012 14:04

You have the right end of the stick

In terms of your understanding of the situation you are right. As a subsidiary in a medium sized group you are required to have an audit.

The audit can be done by an EU or UK registered auditor as auditing standards in the EU are the same. The only thing the EU auditor needs to be aware of is any particular UK specific company law that may differ from EU law on company reporting.

Your company does not need to have a seperate audit by a UK registered auditor and in many cases, following changes in audit rules, having different auditors is excessively onerous and costly!

Thanks (1)