Currently, three size criteria have to be met to qualify for the “small company” for the purposes of claiming an audit exemption. Under the Act, a company will be able to avail of the audit exemption if it can avail of two out of the three of the tests:
balance sheet total of less than €4.4 million
turnover of less than €8.8 million
average number of employees of less than 50
The audit exemption for smaller companies will now be available within groups, for dormant companies and for companies limited by guarantee.
A mechanism will be introduced to allow companies correct defective financial statements following a submission to the CRO which will involve submitting a form along with the corrections.
The qualification criteria to be a medium size company for the filing of abridged financial statements has been widened.
The directors’ report
The directors’ report must contain a statement for each director that so far as he is aware there is no relevant audit information of which the auditors are unaware and he has done all he can to make himself aware of any relevant audit information and to establish that the auditors are also aware of it.