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Audit exemption

Some UK organisations are required to have their annual financial statements audited and others are exempt from the statutory requirement, most often due to their size. Here we provide guidance on the exemption requirements for reporting periods beginning on and after 1 January 2016.

Guidance

Eligibility

Learn whether your organisation qualified for audit exemption for reporting periods beginning on or after 1 January 2016, under the Companies Act 2006 as amended by SI 2015/980.

Read our eligibility guidance
Filing requirements for audit-exempt organisations

Read about preparing financial statements for audit-exempt organisations, including filing requirements.

Read about filing requirements
Alternative services for audit-exempt organisations

Other services and forms of assurance that may be of benefit to audit-exempt organisations.

Learn more about other services

Assurance options

Accounts preparation/Compilation During an accounts preparation (compilation) engagement a qualified accountant will ensure that your company’s financial statements are correctly put together. Agreed-upon procedures During an agreed-upon procedures engagement a qualified accountant will discuss with you and agree a set of procedures to perform that are based on your requirements. Assurance reviews During an assurance review a qualified accountant will review your accounts and investigate any areas of concern. This includes analysing changes from one year to the next and may include further testing of the underlying information if something comes up in the review that catches their attention. Voluntary audit During an audit engagement a qualified accountant examines your accounts. This includes analysing changes from one year to the next, checking to see that your accounting processes are basically adequate, sample testing from the underlying information, and considering the evidence that makes up the audit trail.