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Determining audit thresholds

Determining audit thresholds

Can anyone clear up the following for me?

A limited company that has been trading for a number of years is now also a corporate member of a limited liability partnership. There are also non corporate members but for this purpose the profits earned in the LLP will be transferred back to the limited company for distribution.

My question therefore, does the LLP turnover form part of the audit threshold calculation or is it disregarded as it isn’t included as turnover but as other operating income?

Many thanks. 


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10th Feb 2012 13:34

No & Yes

No - the LLP's turnover would never be included as the company's turnover and as an LLP cannot be a subsidiary, there cannot be a group for which you might need to consider total turnover of the group.

Yes - the LLP's profits are not the company's turnover and can be ignored for the company's audit turnover test.

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