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Audit Exemption
A Limited Exempt Private Company is exempt from audit if all the following conditions are met:
Alternatively, a company is eligible for audit exemption if it is dormant. A company is dormant if there are no accounting transactions* except those relating to:
* An accounting transaction need not create a cash in-flow or out-flow, so the writing-off of a debt, impairment of an asset, adjustment of a provision, or revaluation of an asset will result in a company not being dormant. Likewise, transactions not related to the exempt activities in the payment of interests and taxes, or the payment of or receipt of dividends (even if passed through), will result in a company not being dormant.
Notwithstanding the audit exemption provisions, the Companies Act requires the Directors of the company to maintain proper accounting records and prepare ‘true and fair’ financial statements that comply with FRS.
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Highlights on Corporate Secretarial...
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