Audit exemption

Audit exemption

Didn't find your answer?

To qualify for small company exemption and no audit you have to meet 2 of the 3 criteria.

The criteria of Balance sheet not exceeding £2.8m, is that total assets or the net balance sheet?

Company has:
T/O £2.0m
Gross assets £3.09M
Total liabilities £2.38M
Net balance sheet £0.71M
Employees 80

Therefore met Turnover, but not employees, so the Balance sheet criteria is the query.

I am pretty sure it is Gross assets, but just wanted to check.

Thanks
Helen

Helen Dobbs

Replies (2)

Please login or register to join the discussion.

David Winch
By David Winch
08th Sep 2007 20:46

Gross Assets

It is fixed assets plus current assets (i.e. it is gross assets).

So in this case the "balance sheet total" is £3.09M and an audit will be required (unless some clever person can see a flaw in my logic!).

However the audit exemption criteria and the small company abbreviated accounts criteria are not identical - you have to qualify as a small company and meet all of the audit exemption criteria to be exempt from audit. So, for example, this company would be subject to audit even if it had only 20 employees.

David

Thanks (0)
Euan's picture
By Euan MacLennan
10th Sep 2007 10:45

Fixed assets
To avoid any possibility of misunderstanding, it is perhaps worth saying that it is the net book value of fixed assets, not the undepreciated cost or valuation, which is included in gross assets.

Thanks (0)