Audit Exemption Companies Act 2014
The Companies Act 2014 was designed to promote enterprise, facilitate commerce and simplify the operation of the Companies Acts, enhance corporate governance and encourage commercial probity.
Part 6 of the Companies Act 2014 deals with Financial Statements, Annual Return and Audit and there are 23 Chapters and 136 Sections. The Biggest changes from the previous act are the changes to the Audit Exemption criteria.
The Audit Exemption
The Companies Act 2014 has broadened the range of Companies that can avail of Audit Exemption to included ;
- Limited Companies (Ltd)
- Designated Activity Companies (DAC)
- Companies Limited by Guarantee (CLG)
- Private Unlimited Companies (ULC)
- Certain Company Groups and
- Certain Dormant Companies
The Criteria
For a Company to qualify for an Audit Exemption for a Financial Year two of the following three criteria must be met;
- The Turnover for the year does not exceed €8,800,000
- The Balance sheet total does not exceed €4,400,000
- The average number of employees does not exceed 50
For a Group to qualify for Audit Exemption;
- The Cumulative turnover of all Group Companies do not exceed €8,800,000
- The Cumulative Balance sheet total do not exceed €4,400,000
- The average number of employees in the Group do not exceed 50
Other considerations to be made are
- Have you filed your last 2 Annual Returns on time with the Companies Registration Office
- Have a requirement to have an Audit from a Bank or Investment Group.
Dormant Companies
Certain Dormant Companies can now apply to be Audit Exempt. The conditions the Company needs to meet in respect of the qualifying year are;
- It has no significant accounting transaction, and
- It’s assets and liabilities comprise only of investments in shares of, and amounts due to or from, other group undertakings
If you wish to claim Audit Exemption or would like contact to discuss the steps required to have your Company classed as Audit exempt call us today