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News Story

Audit exemption threshold to be raised to EU maximum of £10.2m

Audit exemption threshold to be raised to EU maximum of £10.2m

The government had concluded that companies will not be required to have an audit for the financial years commencing on or after 1 January 2016 if at their balance sheet date, they satisfy at least two out three criteria, in general for two consecutive financial years.

The criteria are a turnover of under £10.2m, a balance sheet total of £5.1m or less, and fewer than 50 employees.

The statement said that estimates suggest raising the audit exemption thresholds will bring a further 7,400 companies within scope of the exemption, but said the government anticipates that 4,400 will choose to continue to have an external audit.

Martin Garrity, Director said 'There are many reasons why our audit exempt companies choose to have an audit - to give shareholders confidence, satisfy tender requirements, and ensure reliable financial reporting. Even though more businesses are now potentially exempt we expect many will continue to choose to have an audit.'

If you would like to discuss this further, please contact Martin Garrity or Stephen Hinchcliffe on 0113 2574506 or email m.garrity@bprheaton.co.uk

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