Will my company need to be audited?

Small businesses are generally not required to be audited, but your company may need to be if the nature of your work changes.

In general, a small company is exempt from audit if for any year its turnover is below £6.5 million and its balance sheet total is below £3.26 million and there are 50 or fewer employees on average.

However, the exemption is not available if the company becomes a holding company or a subsidiary company, an authorised insurance company or carrying out insurance market activity, involved in banking or issuing e-money, a MiFID investment firm or an UCITS management company, or a corporate body and its shares have been traded on a regulated market in a European State, or if shareholders owning at least 10% of the share capital request an audit.

The directors are responsible for determining whether, in respect of each particular year, the company meets the conditions for exemption, and also for notifying us if the exemption is not available for any of the reasons set out above. If an audit becomes necessary for any reason, we will discuss with you what action is to be taken.