Generally, a limited company that is classified as a small company according to Companies Act 2006 is eligible to claim this audit exemption. In other words, you are allowed to deliver unaudited company accounts to Companies House. Correspondingly, you must disclose the audit exemption statement on your balance sheet.
The audit exemption statement shall be above your director’s signatory on the balance sheet.
The standard audit exemption statement wording sounds like this.
- For the year ending (your company’s year end date), the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
- The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476.
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
- These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
The benefit of claiming audit exemption is that you put less information in your company accounts for public register. Why put less information in your company account is good? less information for your competitors.
However, you must not deliver unaudited company account if your shareholders requested an audit on your company accounts. That why in the second paragraph of the audit exemption statement state the member has not requested an audit. Your director’s signatory on the balance sheet page with that statement on it would confirm that is the case legally.
Another important document your company must deliver to Companies House is the Confirmation Statement.
If you have any questions about your limited company accounts, feel free to contact us. Our accountants would be more than happy to help you.