Companies Act: Can you claim audit exemption now?
For lots of businesses, having an audit is an annual requirement. However, the Companies act 2014 introduced changes recently meaning plenty more companies will be able to avail of what is knows as ‘audit exemption’ i.e. they will not have to get an annual audit. But how do you know whether you can avail of audit exemption or whether you need to go ahead and have a full audit every year? Here we take a look at the criteria.
To avail of the exemption your company must fulfil two or more of the three following criteria:
- Your turnover must not exceed €8.8 million
- The balance sheet total of your company must not exceed €4.4 million
- The average number of employees of the company should not exceed fifty.
In addition to this, the new act also changed some rules so that now some other categories of firms won’t need an audit including:
- Small Group companies
- Companies limited by guarantee
- Dormant companies.
When will I need an audit?
However, even if you meet the criteria you may still have to have an annual audit if you operate in certain industries. If for example you are a charity or an insurance broker you will be required to undergo an audit. It is important to note that audit exemption is only possible when the company has filed its annual returns with the CRO on time, otherwise the company will lose its exemption for at least two years. This applies to Group companies also: if one company is late on its CRO filings, all of the companies within the group will require an audit.
Regardless of whether the company wishes to be audited or not, they must still provide the CRO with annual financial statements prepared in accordance with the company’s act 2014 and relevant accounting standards.
If you would like to appoint an auditor please contact us today.