Audit exemption was introduced for Irish Companies initially by the Companies (Amendment) (No. 2) Act 1999 which was amended by Section 53 of the Companies (Auditing and Accounting) Act 2003 and most recently by Chapters 15 & 16 of the Companies Act 2014. Under the terms of the Act companies that meet specific criteria can avail of the exemption.
The following are the criteria that must be met:
- The company is not a type listed in the Fifth Schedule to the Companies Act 2014. Some companies, such as Companies that are regulated by the Financial Regulator, are not permitted to avail of the audit exemption.
- The company does not fall outside the scope of the Companies Act 2014.
- The annual return was filed on time for the previous year and also the current year’s annual return must be filed on time i.e. within 28 days of the company’s annual return date
- There has been no objection from a shareholder holding 10% or more of the total voting rights to the company availing of audit exemption.
- In addition two or more of the following criteria must apply:
- Turnover must not exceed €12million for the current and preceding financial year
- The balance sheet total must be less than €6m at the balance sheet date for the current and preceding financial year
- The average number of employees must not exceed 50 at the current and preceding financial year end
If you require further information on this or any other matters please contact us at 01-7998300 or email David Marsh