Small and Medium Sized Companies
More small financial services companies have been able to take advantage of the option to have their accounts audited since changes to the Companies Act 1985 were commenced in November 2006. However this framework was amended by regulations that came into force in November 2007 as a result of the implementation of the Markets in Financial Instruments Directive.
Guidance is available below.
Guidance on changes to the accounting and auditing requirements for certain small financial services companies and LLPs (83KB)
For a copy of the Regulatory Impact Assessment please click below:
Final regulatory impact assessment: the Companies Act 1985 (small companies' accounts and audit) regulations 2006
Thresholds for small and Medium-sized Companies and Groups and audit exemption threshold
The booklet below is a guide for all companies to the rules governing public disclosure of accounts. This should be read together with the Companies Act 2006 and the relevant regulations which are available to view on the Office of Public Sector Information website.
Guidance booklet for accounting reference periods which begin on or after 06 April 2008 (PDF)
Research on the Audit Exemption Threshold
The Department has twice commissioned research from an independent researcher, Dr Jill Collis, on the audit exemption threshold in 2003 and on the audit and accounting thresholds in 2008.
Directors views on exemption from the statutory audit – Dr Jill Collis (October 2003) (PDF)
Directors views on accounting and auditing requirements for SMEs – Dr Jill Collis (April 2008) (PDF)
