The majority of companies in Ireland are exempt from the statutory audit requirement. We offer a full range of services for such companies which include –
- Assistance with forming the company, if required.
- Preparation of the annual accounts encompassing the Profit & Loss Account and Balance Sheet of the company from the client’s records (bank statements etc. or company’s own accounting software).
- Preparation of the abridged accounts of the company for filing with the Companies Office.
- Preparation of the Corporation Tax computation and return and dealing with Revenue regarding the submission of the return and payment of any tax liability.
- Preparation of the company’s annual return and filing of the return with the Companies Office.
- Preparation of draft Company Secretarial minutes for the Annual General Meeting and the Extraordinary General Meeting, if necessary.
- Assistance with PAYE, VAT and RCT if required.
- Assistance with Dividend Withholding Tax returns, if required.
- Preparation of Directors Tax Returns.
How does a company avail of audit exemption?
In order to avail of audit exemption, a company must satisfy all of the following conditions, both in respect of the current financial year and the preceding financial year (unless it is the company’s first financial year):
- turnover less than €7.3 million for the year
- balance sheet total less than €3.65 million at the end of its financial year
- the average number of employees less than 50 for the year
- the company must not be a parent or subsidiary the company must not be regulated
- under financial, banking, insurance, investment or trade union legislation
- the company must not be a public company or limited by guarantee
- the annual returns must be up to date having been filed on time with the Companies Registration Office and abridged financial statements attached.
As the above shows, it is vital that annual returns are filed on time with the CRO. Missing an annual return deadline can have costly repercussions in terms of filing fees and the requirement to have an audit.
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).