T.A.Sheehan & Co Accountants and Auditors based in Cork City provide a full range of accountancy and audit services.
For limited companies an audit is required by registered auditors but an exemption may apply in certain circumatances.
Before claiming audit exemption, the directors need to be sure that an audit isn’t required for other purposes, for example, as a condition of a grant claim. Banks may also require audited accounts.
How does a company apply for audit exemption?
The directors need to:
- Pass a resolution stating that the company is taking advantage of audit exemption.
- Keep a written record of the resolution which is available for inspection.
- Make certain declarations on the face of the audit exempt Balance Sheet stating that the company is availing of audit exemption.
- Inform the auditor of the decision to claim audit exemption.
- Shareholders have the right to object to the company availing itself of audit exemption by serving notice on the company.
- Shareholders holding in excess of 10% of the voting rights (in aggregate) must serve notice of the objection in the year prior to the year in which exemption is being availed of or during that financial year (at least one month before the year end).