Audit exemption - Members Accounts - Company Formation - UK Registration Services

The benefit and drawbacks of an audit become the focus once a company is eligible to forego a statutory audit. The audit provides an independent assessment of the company's financial standing and performance. The volume of accounting standards, audit software, company law and audit guideline make the audit process fairly rigorous and provides a reasonable expectation that material misstatements and omissions will surface during the course of the work carried out.

It is therefore no wonder that creditors, particularly banks and shareholders who have little or no direct involvement in the company's day to day affairs may request and audit in order to satisfy themselves that the accounts which they are reviewing are to some degree correct.

In some instances it may eventually cost the company more money if banks and others place arduous demands on the company's directors and staff to produce evidence of trading conditions because they have no or little confidence in the accounts which were not audited. It may be cheaper all-round to just have an audit carried out to cover any eventuality in terms of financing or outside parties in general looking for verification of the company's position.

Further News and Articles

1. Forming A Company Just Became Easier

2. Statutory Requirements For New Companies

• Issue and Allotment of Shares
• Transfer of Shares
• Dividends
• Company Meetings
• Company Notices
• Directors Meetings
• Single Member Companies

3. Non Profit Organisations

• Options for incorporated not-for-profit organisations
• Companies House Coding System
• Non s30 companies
• Royal Charter
• Charitable Companies

4. Company Directors and Secretaries

• An introduction to limited companies
• Role and duties of a company director
• Role and duties of a company secretary
• What you have to send to Companies House
• Quality of company documents
• Further information

5. Annual Returns

• Completing an annual return
• Completing the shuttle annual return Form 363s

6. Accounts and Accounting Reference Dates

• Accounting reference dates
• Submitting accounts to Companies House
• What if the accounts are delivered late?
• Small and medium sized companies accounts submission
• Very small company audit exemptions
• Audit exemptions and accounts to shareholders
• Exemption from audits for dormant companies
• What happens if my company starts trading again?
• Partnership accounts

7. Company Auditors

• Appointment of auditors
• Dormant company audit exemption
• What and who are recognised supervisory bodies?
• Removal of auditors

8. Share Capital and Prospectuses

• Share capital
• What is issued capital?
• Non-cash payments?
• Are there different types of shares?
• Can class rights be amended?
• Redemption and purchase of own shares?
• Prospectuses and listing particulars

9. Late Filing Penalties

• Late filing penalties
• Late filing penalties need not be necessary
• Once a late filing penalty has been imposed
• Further information

10. The Costs and Benefits of Company Registration

• Company Formation Introduction
• Costs and benefits of limited liability
• Restrictions and costs of setting up a company I
• Restrictions and costs of setting up a company II
• Restrictions and costs of setting up a company III
• Restrictions and costs of setting up a company IV
• The registration of company names
• The company’s constitution and the ultra vires rule
• Summary and conclusions