Audit on company accounts are compulsory for large and medium size company. Small company and micro entity may claim audit exemption that is not to have their company accounts audited.
However, some small companies and micro entities are not allowed to claim audit exemption at all. They must deliver audited company accounts to Companies House.
These companies are:
- A public limited company.
- A company is parent or a subsidiary a group, with the group turnover exceed the audit threshold.
- An authorised insurance company or carrying out insurance market activity.
- A company involved in banking or issuing e-money.
- A Markets in Financial Instruments Directive (MiFID) investment firm or an Undertakings for Collective Investment in Transferable Securities (UCITS) management company.
- A corporate body and its shares have been traded on a regulated market in a European state.
|Large company||Medium size company|
|Sales less than||> £36 million||£36 million|
|Balance Sheet total||> £18 million||£18 million|
|Average no. of staff less than||> 250||250|
Large company must prepare and submit full audited accounts with Companies House.
Medium size company must have their accounts audited but may opt to prepare accounts giving less information for public record.
|Micro entity||Small company||Audit exemption|
|Sales less than||£632,000||£10.2 million||£10.2 million|
|Balance Sheet total||£316,000||£5.1 million||£5.1 million|
|Average no. of staff less than||10||50||50|
Small company and micro entity company may choose not to audit their company accounts by claiming audit exemption.
However, they may opt for voluntary audit if the audit would benefit them. For example, the company is preparing for admission into stock exchange require minimum of three years audited company accounts with unqualified audit report prior to admissions.
Audit includes verifying information in your Confirmation Statement filed with Companies House is still valid and is presented in your company accounts where required by law.